The property market could be heading for a slowdown towards the end of the year, Bank of England data suggests.
UK Finance data has shown mortgage approvals have been on the rise over the summer months, hitting a decade-high in July, but lenders are not hopeful of a boost in activity over the next three months.
The latest Bank of England Credit Conditions Survey found lenders reported that demand for mortgages increased in the three months to the end of August but is expected to remain unchanged up to the end of November.
Home owners may choose to improve rather than move, with lenders anticipating an increase in demand for remortgages over the next three months.
This is despite lenders predicting more availability of mortgages in the next three months, with most citing a need to fulfil market share objectives.
Commenting on the data, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The Bank of England credit conditions report is always a very good way of assessing future trends in the property market.
“This quarter’s figures are no exception and show a modest recovery in demand for mortgages but little expectation of the uplift being maintained.
“The results mirror much of what we are seeing on the high street – some initial increase in activity over the summer which hasn’t been maintained while political uncertainty remains, with transactions taking longer than expected and many sellers reluctant to put their properties on the market.
“Unfortunately, this is restricting choice for the buyers that do want to look beyond Brexit.”