2014.10.2103:07:22UTC+00New data supports slowdown in UK housing market

Results from a new survey have provided more evidence that Britain’s housing market is cooling down after mortgage lending decreased and caution among buyers grew.

According to a report from the Council of Mortgage Lenders (CML), gross mortgage lending during the month of September was 1% lower than in August at £17.8 billion, but was still 10% higher than in the same month in 2013. The Council says that the decline indicates that activity in the housing market has started to plateau.

Chief economist for the CML, Bob Pannell, said that, “Recent indicators and policy actions corroborate our view of a gentle easing in market conditions. There is growing evidence that mortgage lending activity, and the housing market, are sitting on a plateau.”

The Bank of England’s  latest report on lending trends released on Monday echoed the sentiments, showing that caution and uncertainty regarding the pace of underlying demand for lending is growing in the market.

Markets in the UK have been expecting an increase in the central bank’s borrowing rates in the first part of next year , but disappointing economic data and comments from policy makers have pushed investors and traders to review their position. Expectations for the rate increase range as far back as the middle of 2015.