Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Tuesday, August 31, 1999 Published at 10:54 GMT 11:54 UK


Business: The Economy

Mortgage lending at record high

House prices are booming in southern England

Mortgage lending in the UK reached a record levels in July as the housing boom continued.

More than £3.4bn was lent on dwellings, and consumers borrowed another £1.3bn for purchases in the shops.

The figures are consistent with other data from the Nationwide Building Society, which show house prices rising by 9.8% year-on-year, and from the Building Societies Association, which showed a sharp rise in lending in July.

In just one year, net mortgage lending has increased by 50%, from £2.1bn in July 1998.

Total net lending shot up to £4.7bn in July, compared to £4.3bn in June.

Credit card lending is also accelerating, with £506m lent in July compared to £428m in June.

Bank rate concerns

The accelerating pace of house prices is fuelling a lending boom that is bound to worry the Bank of England as it considers interest rates.

It may have to consider reversing some of the seven interest rate cuts it has made since the autumn in order to the cool the housing boom, which seems to be concentrated in the south of England.

Many in the building industry, however, argue that the housing boom is just localised and temporary, and house price levels have not returned to the elevated levels of the late 1980s.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Economy Contents


Relevant Stories

31 Aug 99 | The Economy
House prices rise

19 Aug 99 | The Economy
No let-up in housing boom

20 Jul 99 | The Economy
Housing boom continues

16 Jul 99 | The Economy
Britain's £100bn mortgage market

13 Jul 99 | The Economy
Housing boom spreads across Britain

02 Jul 99 | The Economy
House prices rise sharply





Internet Links


Bank of England

Council of Mortgage Lenders


The BBC is not responsible for the content of external internet sites.




In this section

Inquiry into energy provider loyalty

Brown considers IMF job

Chinese imports boost US trade gap

No longer Liffe as we know it

The growing threat of internet fraud

House passes US budget

Online share dealing triples

Rate fears as sales soar

Brown's bulging war-chest

Oil reaches nine-year high

UK unemployment falls again

Trade talks deadlocked

US inflation still subdued

Insolvent firms to get breathing space

Bank considered bigger rate rise

UK pay rising 'too fast'

Utilities face tough regulation

CBI's new chief named

US stocks hit highs after rate rise

US Fed raises rates

UK inflation creeps up

Row over the national shopping basket

Military airspace to be cut

TUC warns against following US

World growth accelerates

Union merger put in doubt

Japan's tentative economic recovery

EU fraud costs millions

CBI choice 'could wreck industrial relations'

WTO hails China deal

US business eyes Chinese market

Red tape task force

Websites and widgets

Guru predicts web surge

Malaysia's economy: The Sinatra Principle

Shell secures Iranian oil deal

Irish boom draws the Welsh

China deal to boost economy

US dream scenario continues

Japan's billion dollar spending spree