Buy-to-let
Approvals, which are an indicator of housing market demand, are up 12.8 per cent from the same period last year, but in April fell to a seven month low.
Nevertheless, mortgage approvals remain above the historical average of 97,000 per month with demand conditions still firm.
A modest slowdown in the housing market is backed up by Royal Institution of Chartered Surveyors (RICS) estate agents who have reported that new enquiries from would-be-buyers rose in April at the slowest pace in almost a year.
Milan Khatri, Chief Economist, said: Some easing mortgage activity levels is not surprising as the boost to confidence from the interest rate cut last August is fading, while affordability conditions for prospective buyers remain difficult, particularly for first-time buyers.
However, with the economy likely to grow at or above trend in 2006, RICS expects housing demand to stay well supported.
Khatri said: Recent falls in share prices are not expected to knock the property market while it is also clear that the housing market is not returning to boom conditions as also demonstrated by Nationwide house price data showing annual inflation remaining below 5 per cent in May.
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