The Bank of England’s lending to individuals data released today shows that growth in lending has remained failry static over the past 2 years.
In May the Bank’s lending secured on dwellings rose £1.1 billion only slightly higher than the previous six-month average. The 3 month annualised growth rate also only just increased from 0.8% to 0.9%.
The data from the Bank has made the BBC suggest that the property market in the UK is set to remain subdued in the coming months.
House sales have been running at half their pre-2007 levels and are likely to stay low for the near future.
So although the lending figures are increasing, the growth is so small and the level so reduced, that the property market is bound to stay subdued.
Gross lending secured on dwellings was £11.2 billion in May, close to the previous six-month average of £11.3 billion. Repayments in May were £10.7 billion, slightly lower than the previous six-month average of £11.1 billion
For more information visit the Bank of England webiste: http://www.bankofengland.co.uk/statistics/li/2011/may/index.htm