Stalled house price increases and falling demand for mortgage lending has those in and around the UK housing market concerned this could be the start of a slowdown.  The Bank of England released the latest figures in regard to mortgage lending with indications that the housing market is cooling off heading into the fall months.  For the second month running, mortgage approvals fell off the pace they were carrying for the last several months.  And house prices did not increase for the first time in a year and a half, causing concern for those close to the market.

According to the latest figures, mortgage approvals fell back from more than 66,000 to just slightly more than 64,000.

The home mortgage loan market has been aflame for months and the possibility of it cooling down is higher than it has been for some time.  The residential mortgage lending sector will enter a period of new rules within the next two days.  Those institutions making mortgage loans will be placed under new restrictions.

Building societies and banks will not be able to allocate more than 15% of their funds on hand to those attempting to borrow four and a half times their income or greater.

The housing market is showing signs of losing steam going into a non-selling season.  Remortgages however are primed to take off due to the possibility of the base rate increase taking place in the next few months.

Howard Archer of IHS Global Insight commented on the current tone of the housing market, saying: “With housing market activity moderating from its early 2014 highs, we believe house prices are likely to generally rise at a more restrained rate over the coming months.”