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BoE figures reveal housing market in good health

The July figures from the Bank of England show the UK mortgage market is in excellent health with a 10.9bn increase in the total net lending to individuals.

In comparison, net lending to individuals in June increased by 9.8bn, and the average increase over the previous six months was 10bn.

The 9.8bn increase in net lending secured on dwellings in July was above the 9bn increase in June and the 8.9bn average increase over the previous six months.

The 12-month growth rate for net lending secured on dwellings has consistently increased month-on-month since April, and rose a further 0.2 percentage points in July to 11.2%.

The total number of approvals secured on dwellings fell in July to 289,000 from 295,000 in June. The value also decreased, from 29.4bn in June to 29bn in July.

However, the previous six month average was 291,000 to the value of 29bn.

Approvals on house purchases rose to 16bn in July up from 15.8bn in June, with a previous six month average of 15.2bn.

Approvals on remortgages fell from 11.4bn in June to 10.9bn in July. In comparison, the previous six month average was 11.3bn.

David Stubbs, economist at the Royal Institute of Chartered Surveyors says: “The housing market remains in excellent health, with a strong economy and investor activity fuelling demand.

“RICS expects UK house prices to rise by around 7% this year, however, first time buyers will continue to find it hard to access the housing market as house prices rise faster than earnings.

“The difficultly of getting onto the housing ladder has strengthened tenant demand in the rental market, making accessibility for first-time buyers prohibitive.”

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