Mortgage lending slows in August
The number of mortgage approvals slowed in August although numbers remain ahead of the long-term average, according to official figures.
New figures from the Bank of England have revealed that a total of 119,000 mortgages were approved during the month of August, a slight reduction on the 120,000 approved in July.
Mortgage lending grew by £9.14 billion in August, below the £10 billion forecast by analysts and down from the £9.27 billion in loans approved in July. However, the figure remains some 16 per cent above the average over the last ten years.
"While net mortgage lending and mortgage approvals in August were still relatively high, the fact mortgage approvals edged back for the first time in four months hints that August's interest rate rise - and the possibility of more hikes to come - could be starting to have some dampening impact on housing market activity," Howard Archer, chief economist UK at the Global Insight consultancy said.
However, Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors, provided a more upbeat analysis.
He commented: "Despite a slight drop in mortgage approvals in August, activity is still at high levels and housing demand is robust.
"We expect the buoyancy of the economy and strong consumer finances to put continued upward pressure on house prices and the recent upward spurt in the market to be sustained, though further interest rate rises remain on the cards for November."
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