Mortgage lending rises steeply in September
Britain’s biggest mortgage lender, Halifax, reported a 1.2% rise in property prices during September.
107,000 loans were approved for house purchase during the month, the highest figure since June last year, a sharp increase on the 86,000 approved during September 2004, according to the Bank of England.
Jonathan Said at the Centre for Economics and Business Research, said: “This adds credence to the notion that the housing market has stabilised, with lower interest rate expectations one month ago keeping potential housebuyers plentiful.”
This flatness in consumer credit is indicative of the sluggish retail market, however it suggests that consumers have not cut back strongly on their borrowing habits.
“Although today’s news will not spark a return to the Bank of England’s consumer debt worries that were very topical one year ago, the Monetary Policy Committee will be taking this into account.
“If inflation were to drive the MPC toward a rate hike next year, it will not need to worry about collapsing consumer borrowing, particularly in the housing market.”
