Mortgage lending at three month low

Bank of England statistics have shown that loans to homebuyers fell to a three month low in August, with approvals falling from 66,100 in July to 64,212. Matthew Pointon, property economist at Capital Economics, said the “rapid deceleration” is due to expensive house prices. The Bank of England has pointed to the introduction of the Mortgage Market Review - which tightened lending criteria - as a cause. However, data from the National Association of Estate Agents shows the number of first time buyers has increased for the first time since April this year. Its survey indicates that 28% of sales were to first time buyers in August. Meanwhile, the Bank of England is preparing to deliver its verdict on Thursday as to whether new powers are needed to guard against risks building up in the housing market following the introduction of the Help to Buy mortgage guarantee scheme