The housing market ran out of steam towards the end of the summer, as high street banks approved the lowest number of mortgages in over a year.
The number of mortgages approved fell to 39,271 in September, which is the lowest number seen since July 2013, and is down by a tenth compared to September 2013.
The data comes from the British Bankers’ Association (BBA), which said that it leant mortgages of a total value of £6.4bn during September.
The chief economist of the BBA, Richard Woolhouse said, “A year ago there were many of us who were concerned by the heady pace of property price rises. Today’s figures suggest we are now experiencing a steadier housing market and that’s no bad thing.”
The price of the average mortgage has dropped since August, heading to the lows seen in September 2013.
Stringent affordability checks are thought to have affected the number of mortgages approved over the summer. It is hoped that lending will pick up again this quarter.
The two main issues facing the housing market are that people cannot afford mortgages, and that there are not enough homes being built, which drives the price up and further out of people’s reach. If the mortgage lending rate drops too low again, there will be even less demand for builders to meet.
