The increase in total net lending to individuals in August (£8.9bn) was larger than in July and broadly in line with the previous six month average, according to the latest figures from the Bank of England.
Within the total, the increase in net lending secured on dwellings (£7.6 billion) was stronger than the increase in July and stronger than the previous six month average, it says.
The twelve-month growth rate fell to 10.3% in August from 10.4% in July. The number of loans approved for house purchase was 8,000 higher than in July while those for remortgaging and those for other purposes were also higher.
David Stubbs, economist at the Royal Institution of Chartered Surveyors (Rics) says the figures reveal the gradual recovery in housing market activity was strengthened in August. Household sentiment has held up in the face of both a mild economic slowdown and labour market. In addition, he says, August's interest rate cut has boosted confidence in the market.
Sutbbs adds: “Rics expects housing market activity to continue strengthening in the months ahead, helped in part by the August interest rate cut and a solid economic climate, with indicators such as employment rising in the past year and the number of job vacancies still holding at relatively high levels.”IFAonline
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