Lending dips 4% in June: UK Finance

Gross mortgage lending dropped to £21.9bn in June, down by 4 per cent on the same month last year, according to the latest figures from UK Finance.

Approvals for house purchase were 2.9 per cent higher than June 2018 at 48,539, but remortgages were 1.4 per cent lower over the same comparison period at 29,415.

Today’s data follows figures from HM Revenue & Customs yesterday showing a 16.5 per cent slump in property sales last month.

North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says the contrasting trends highlight the danger of placing too much emphasis on one month’s results.

He says: “What is clear is that the market remains relatively resilient with no signs yet of corrections one way or the other.”

Responsible Lending development director Tim Waterlow says the healthy jump in mortgage approvals for home purchase shows there is “light at the end of the tunnel” following the “staggering drop” in transactions reported yesterday by HMRC.

He says: “Plenty of people in business will be crossing their fingers for a recovery in sales volumes because that is what is badly needed if, long term, upstream industries including lenders, house builders, surveyors and agents are not to suffer.

“Low sales volumes are also toxic for the property market — transactions are the oil that keeps it moving.”

Others expressed hope that political change could help reinvigorate the market.

MT Finance commercial director Gareth Lewis says: “Now we have one part of the political frustration out of the way and know who is the new Prime Minister, we may find that there are benefits when it comes to tax and stamp duty.

“We don’t know how long it will take Boris Johnson to get round to looking at that – let’s face it, there are plenty of other matters to deal with first – but there may be measures afoot to stimulate the property market at some point.

SPF Private Clients chief executive Mark Harris says: “Hopefully, the installation of a new Prime Minister at Number 10 will effect a positive change for the wider economy and housing market, although it is still very early days.

“Swap rates continue to fall, with a number of lenders, including Nationwide, NatWest and Accord cutting some mortgage rates in the past week.

“This downward pressure on pricing is likely to continue as lenders compete for business.”

Recommended

UK house prices grow 1.2% in May

The average UK house price rose 1.2 per cent in the year to May, according to latest government data. On a monthly basis prices nudged upward only slightly, by 0.1 per cent, bringing the average property value in the UK to £229,431. In England, annual prices came in at 1 per cent higher and monthly […]

UK-Houses-Home-Mortgage-700x450.jpg

Remortgaging jumps 20 per cent in May: UK Finance

The number of remortgages jumped by 20 per cent in May compared to a year earlier, the latest UK Finance lending figures reveal. There were 21,370 remortgages with further equity withdrawn and 19,650 remortgages without extra borrowing, marking an increase of a fifth for both measures compared to last May. The number of mortgages for […]

Houses, house, property, monopoly

Halifax reports 5.7% UK house price growth

UK house prices shot up 5.7 per cent in the year to June, according to Halifax’s latest figures. The lender’s report also details a month-on-month drop for the first time since April, with the average property price declining by 0.3 per cent. This movement leaves the average house price across the UK at £237,110. Halifax […]

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Close

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now