The number of mortgage approvals fell to 119,000 in August, according to figures from the Bank of England.
The figure is below the 120,000 in July, but is 16% higher than the average for the past decade.
Approvals for remortgaging were 97,000 in August and were in line with July’s outturn.
Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors (RICS), says: “Despite a small 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.”
The BoE figures also reveal the increase in net lending to individuals fell to £9.9bn in August but was in line with the previous six month average.
The 12 month growth rate was unchanged from July at 10.4%, while the three month annualised growth rate fell 0.3% to 10.2%.
Within the total, the increase in net lending secured on dwellings was £9.1bn in August, below the £9.3bn increase in July but higher than the previous six month average.IFAonline
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