Fall in mortgage lending as housing market cools

A residential street is seen in Notting Hill in central London October 8, 2013. Britain kicked off a flagship scheme on Tuesday to help people get on the property ladder, defying critics who believe the state-backed mortgage guarantees could fuel another housing bubble as the country’s economy picks up speed. Hours before the government launched “Help to Buy,” a survey suggested British house prices were rising at their fastest pace in 11 years. REUTERS/Toby Melville (BRITAIN - Tags: BUSINESS CITYSCAPE POLITICS SOCIETY REAL ESTATE)
A residential street is seen in Notting Hill in central London October 8, 2013. Britain kicked off a flagship scheme on Tuesday to help people get on the property ladder, defying critics who believe the state-backed mortgage guarantees could fuel another housing bubble as the country’s economy picks up speed. Hours before the government launched “Help to Buy,” a survey suggested British house prices were rising at their fastest pace in 11 years. REUTERS/Toby Melville (BRITAIN - Tags: BUSINESS CITYSCAPE POLITICS SOCIETY REAL ESTATE)
REUTERS

Mortgage lending dropped in August, adding to the mounting evidence of a slow-down in the property market.

The number of home loans fell to 65,400 in August, down 3 per cent from July, according to latest figures from the Council of Mortgage Lenders (CML). It was the first month-on-month lending decline since February.

However, total lending rose 8 per cent on the year.

Total borrowing was also down 3 per cent on the month to £11.4 billion, but on an annual basis prices rose 8 per cent and the value of lending was up by 19 per cent.

Lending to first-time buyers was down 4 per cent on the month in August to 28,900, but up 9 per cent on the year. The value of