House purchase approvals developed slowly in January, the latest data from the Bank of England shows.
The number of approvals grew to 60,786 last month from 60,349 in December. The number was down compared to January 2014 (75,559).
Lending on homes increased by £1.6 biilion in January, which is somewhat lower compared to the average monthly increase of £1.8 billion over the previous six months.
Remortgaging approvals were down on a monthly and an annual basis. Their number was 31,640, compared to 32,736 in December and 35,913 in January 2014.
The latest figures from the Council of Mortgage Lenders (CML) have also shown a decrease in remortgaging. Activity in this sector has shrunk by 11 per cent throughout 2014.
Figures, released by Nationwide today show a slowing in the average house price by an annual 5.7 per cent in February, compared to an annual 6.8 per cent in January.
“The broader economic backdrop has remained supportive of housing market activity. Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions. Indeed, the unemployment rate has continued to decline and earnings growth has picked up, particularly in inflation-adjusted terms, thanks in part to the sharp decline in energy prices.
“Nevertheless, the pace of housing market activity remains fairly subdued. There was a small increase in the number of mortgages approved for house purchase in December, up 2% from 59,000 in November to 60,300 in December, though it remains too early to determine whether this marks a turning point in activity,” Robert Gardner, Nationwide’s chief economist, commented.
