The increase in total lending to individuals in June, at £8.8m, was less than May and weaker that the previous six month average the latest figures from the Bank of England reveal.
Within the total, the Bank says the increase in net lending secured on property was weaker than the increase in May at £7.5bn but stronger than the previous six month average. The twelve month growth rate also fell from 11.1% in May to 10.8% in June.
The number of loans approved for house purchase was in line with May, while those for remortgaging were higher, adds the Bank.
Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors (RIcs), says the figures reveal mortgage approvals are still down 11.9% though he claims this is an improvement from the fall of 21.3% in May.
"The figures indicate that housing market activity is holding at moderate levels, though the economic slowdown and a modest deterioration in the labour market this year has introduced an element of caution into the market. However, Rics expects a fall in interest rates to provide some support to the housing market in the latter half of this year,” he adds.
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