Property price growth 'muted'

Home purchase mortgage approvals dip as buyers 'pause for reflection'

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The number of mortgage approvals made to home buyers dipped in August, according to Bank of England figures.

Some 64,680 mortgages for house purchase were approved in August, down from 65,161 in July.

There were also around 900 fewer remortgage approvals during August, the report said. The remortgaging figures only capture remortgaging with a different lender.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “The holiday period may have dampened buyer activity, with many prospective buyers away on summer breaks.

“The drop in mortgage approvals suggests the housing market is beginning to stutter as it adjusts to the end of the stamp duty tax break and prepares for the autumn Budget.

“Higher purchase costs have resulted in more muted property price growth in recent months as buyers negotiate harder to keep purchases affordable and sellers adjust their expectations and price homes more competitively to secure a sale.”