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Mortgage approvals dip slightly in August

The total number of mortgage approvals for house purchases fell slightly in August compared to the previous month, falling from 99,824 to 99,234, according to data from the Bank of England.

The figure was also below the previous six-month average, which stands at 100,352, while the value remained at £11.2bn for August.

House purchase approvals also dipped slightly, falling from 48,346 to 47,372 between July and August. The total value of approvals for house purchase fell from £7bn to £6.7bn. The average for the previous six months stands at 48,619.

The total number of approvals for remortgaging increased in August. There were 28,042 approvals, up from 27,520 in July, while the total value remained at £3.6bn. The previous six-month average is 26,765.

Total net lending to individuals rose by £1.5bn in August. The twelve-month growth rate increased by 0.1 per cent to 0.9 per cent.

E.surv business development director Richard Sexton says: “There’s no need to panic or start industry wide hand-wringing; these stats are not proof we are about to plummet into a massive housing crash, whatever tomorrow’s headlines say.  No doubt, some lenders are pausing for thought ahead of Government led cuts before committing to new lending.  

“Undoubtedly, lending is constrained, but this can’t last forever – for every month with disappointing lending figures, we are effectively seeing an increased unsatisfied demand grow.  Market forces dictate that this will reach a level which will encourage profitable and sustainable lending to return in the future.”

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