Mortgage approvals increased in September, but were still lower than the same month last year. This, according to experts, reveals that the housing market is cooling down, despite the continued strength immediately following the Brexit vote. Many had thought the housing market would tank downward quickly, but the slowing pace has been less dramatic than expected.

In August, the level of mortgage approvals reached a 19 month low. The increase in September is optimistic, but caution reigns for the economy following the Brexit vote.

Rebecca Harding, chief economist of the British Bankers’ Association, which released the above data information, remarked, “Mortgage approvals picked up slightly this month. But the housing market continues to shows signs of underlying weakness.”

Some of the decrease in the number of mortgage approvals could be because in the beginning of the year there was a boost to the data due to those seeking to avoid tax increases that went into effect in April. The increase was for all secondary bought homes and landlord investment property.

However, there is definitely a slowdown in the market and that trend is expected to continue next year as the impact of the Brexit vote actually starts to impact the economy beyond thought. The tightening up of spending by consumers and businesses as a cautionary measure will be felt fully, and this will be seen in the housing market as home buyers hold off, as well as home movers.

Homeowners are therefore more likely to choose to stay put and will be seeking remortgage deals to further enhance their safety net against the unknowns of the Brexit fallout.