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July mortgage lending down 71% year-on-year

Lending on property fell by 71 per cent in July year-on-year to just £4.3 billion.

According to the latest statistics from the Bank of England, the total net lending to individuals in July was £4.3 billion, compared to £7.5 billion just three months ago and down from £9.35 billion July 2007.

Lending secured on dwellings was down to 33,000 approvals in July 2008, down from 55,000 six months ago.

These purchase figures are the lowest recorded by the Bank of England since it began its statistical reports in 1993.

The numbers of loans approved for house purchase, 33,000, and remortgaging 69,000 were both lower than in June.

Propertyfinder.com director Nicholas Leeming blames the Chancellor’s recent indecisiveness regarding stamp duty on the fall in mortgage activity.

He says: “Transaction levels in July suffered even further as the government failed to nip stamp duty holiday rumours in the bud.

“The minority of people who are in a position to move have been waiting to see if they could avoid paying tax by delaying purchase. Although a stamp duty break now looks unlikely, the government needs to take decisive action and announce what measures they are planning in order to put the rumours to rest.”

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