Mortgage drop points to house price slowdown
THE HOUSING market has displayed further signs of cooling, with the number of mortgage approvals dropping to a 14-month low in September.
The number of approvals for house purchases fell to 61,267 in September from 64,054 in August, according to figures released yesterday by the Bank of England.
Total mortgage approval values were £15.3bn in September, down from £16.1bn in August. The data is consistent with recent figures from the Land Registry that show house prices fell last month in most areas of the country.
“September’s household borrowing data should further quell concerns about the supposed threat posed to the economy by the housing market. Borrowing fell back, with little signs of a return to the credit-fuelled days of pre-2008,” said economist Martin Beck, adviser to the EY Item Club.
The drop in approvals follows an overall dip in lending to the private sector.
In the year to September, lending to the private sector grew only 0.7 per cent, down from one per cent in August.