Mortgage approvals in the UK have risen for four consecutive months, with new landlords playing a significant role in boosting the number to 35,226 in August, according to new figures released by the British Bankers’ Association (BBA).
“The banks’ new lending has ticked up in the past couple of months with higher buy-to-let demand…although the general landscape is one of households not wanting to take on more borrowing and businesses waiting for trading conditions to improve,” said David Dooks, Statistics Director of the BBA.
The average value of home loans in the UK rose one percent year-on-year to £145,000, but fell slightly from July’s £151,500.
“Although they [mortgage approvals for house purchases] were at a 15-month high in August, there is currently little evidence that housing market activity is really shifting up a gear. Indeed, at 35,226 in August, mortgage approvals were only 62 percent of the average monthly level of 57,059 seen since 1997,” noted Howard Archer, Chief UK and European economist at IHS Global Insight.
Total mortgage lending has likewise climbed to a 25-month high, according to data released by the Council of Mortgage Lenders. However, it fell short of the monthly averages posted prior to 2007.
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