Loans to homebuyers are up 77% on last year but construction and property firms are borrowing less
Last month the number of house purchase mortgages approved by banks reached its highest level since March last year, according to new figures from the British Banking Association (BBA).
The number of approvals, at 42,088, was 77% higher than a year earlier, in September 2008, and represented a rise of 3% on the August 2009 figure.
The value of house purchase mortgage loans approved edged up marginally on the previous month, from 拢5.8bn to 拢5.9bn.
However, September continued the recent trend for low levels of lending to construction and real estate companies.
Construction firms last month paid 拢500m more back to banks than they borrowed, taking total lending to the sector to 拢20bn. Real estate, renting and other business services companies paid back 拢2.1bn, leaving them with 拢151bn of loans outstanding.
BAA statistics director David Dooks said: 鈥淢ortgage lending by the high-street banks is continuing to improve from the lows seen earlier this year, and the number of house purchase approvals continues to recover. Housing market activity will depend, however, on more properties coming on to the market.
鈥淟ending to companies continues to be affected by current trading conditions. In perhaps the hardest-hit sectors, related to commercial property and construction, lending levels continue to fall and company borrowing in general remains subdued.鈥�
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