Mortgage lending by banks has hit a sixteen month low after a fall in housing demand, says the British Bankers' Association (BBA).
Approved mortgages dipped in August to 31,767 from 34,219 in July; the lowest figure since April last year.
The BBA, whose members account for almost two-thirds of the mortgage lending market, says gross mortgage lending by major banks dipped by 7.6% from a year ago to £8.1bn.
On a positive note, banks' net mortgage lending grew by 4.1% from last August boosted by strong mortgage repayments.
David Dooks, BBA statistics director, says demand for mortgages is "weak" and even if house prices fall it is "unlikely" demand will accelerate in the next couple of months.
He did not blame the decrease on tight lending conditions in the banking sector.
"The on-going contraction in net lending to business masks the reality of finance available. Bank of England research shows that there is around £25bn of new lending to business quarter on quarter, but this is being more than offset by businesses paying down debt as part of their balance sheet management and cost containment," says Dooks.
Follows Asset Management Market Study
To open in second half of 2019
Regular reminders and updates
9 December 2019 deadline
Joe McDonnell joins as head of portfolio solutions (EMEA)