Mortgage lending has fallen again this month, according to the British Bankers? Association (BBA), indicating that the property market is set to continue stalling.
According to the BBA, following a 20% fall in July, the amount loaned to individuals for house purchase dropped a further 10% to £7.2bn in August, indicating a further cooling in the demand for houses.
The number of mortgages approved also fell from 71,000 in July to 64,000 in August.
The figures are also low compared with last year. 16% more money was loaned to individuals for house purchase in August 2003 than in the same month of this year.
While mortgage borrowing was weaker in August than in July, consumer credit growth was stronger, showing that the recent interest increases may have failed to reign in consumer expenditure and debt.
David Dooks, BBA director of statistics, said: ?The slowing down of net mortgage lending looks set to continue in the next couple of months. A further weakening in the numbers of loans approved in August indicates that households? appetite for secured borrowing is moderating.
?However, consumer credit growth in August was stronger than in July, with card borrowing in line with relatively robust retail sales.?