The mortgage market displayed “welcome signs of life” in August, although not to the extent of signalling a housing boom.
Around 52,000 home loans were given for house purchases, according to the Council of Mortgage Lenders (CML), a 7 percent increase on July.
Remortgaging was also on the rise, with a 30 percent increase from the same month the previous year.
The CML said though that fears over the UK and European economies were hurting confidence in the housing market.
The Royal Institute of Chartered Surveyors said that fragile consumer confidence was preventing many people from putting their properties up for sale.
Whilst house prices have remained static in recent months, there are signs that increased mortgage borrowing could stimulate house sales this autumn.
The Bank of England recently said that mortgage approvals were at their highest level since December 2009.
It is understandable that there is much fear surrounding this issue and this accurate information – giving the precise number of home loans handed out – is particularly useful even without the bonus of knowing the increase is 7%. It may well be the case that the UK economy is struggling and our European counterparts aren’t doing much better across the channel but it is a relief to be armed with facts as robust and reliable as the information here.
Andy – do you know who it was at The Royal Institute of Chartered Surveyors who said consumer confidence is fragile? I know it’s not necessary in your well written article to explain exactly who made this remark but I am lost when trying to work out who it was. If you could enlighten me I will be very grateful.
Hi Mr Flood
The statement was from the organisation as a whole and not one individual.