Lending still subdued by stamp duty holiday end

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The annual growth in the banks’ net mortgage lending of 4.3% (slightly lower than last month’s 4.5%) still substantially exceeds annual growth of just 1% in March for the mortgage market overall.

Gross mortgage lending of £8.2 billion in April was lower than both March and the average of the previous six months (£9.1 billion).

Repayments were stronger than usual as banks actively encouraged borrowers to use surplus cash to reduce their borrowing where possible. Net mortgage lending grew by only £1.8 billion in April compared with £2.3 billion in March, and was below the previous six month average.

The numbers of approvals for house purchase, though higher than the same point a year ago, are low when compared to historical trends. The average value of house purchase approvals (£146,700) was 11.7% higher than a year ago. Numbers of remortgaging and equity withdrawal approvals continue to be lower than a year earlier.

BBA statistics director, David Dooks said: “Household priorities are clearly reflected in these latest data

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