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| Demand for borrowing remains weak | Demand for borrowing remains weak |
| (40 minutes later) | |
| The appetite for borrowing among consumers remained weak in September, according to figures from the Bank of England. | The appetite for borrowing among consumers remained weak in September, according to figures from the Bank of England. |
| The number of mortgages approved for house purchases was almost unchanged from the previous month at 47,474, as the housing market stayed at a plateau. | |
| Net mortgage lending was down on the previous month but higher than July. | Net mortgage lending was down on the previous month but higher than July. |
| Borrowing through personal loans and credit cards rose slightly in September but consumers remained cautious. | Borrowing through personal loans and credit cards rose slightly in September but consumers remained cautious. |
| Known as consumer credit, this figure was up £262m in September. In recent months consumers have adopted a safety-first approach to this unsecured borrowing owing to uncertainty about the economy, jobs and personal finances. | Known as consumer credit, this figure was up £262m in September. In recent months consumers have adopted a safety-first approach to this unsecured borrowing owing to uncertainty about the economy, jobs and personal finances. |
| Housing bubble | |
| The figures show a dramatic difference between recent months and the height of the property market boom in the autumn of 2007. | |
| In September that year, net mortgage lending increased by £10bn, the second highest monthly figure on record. Three years on, net mortgage lending was about 1% of that, at £112m. | |
| Mortgage approvals also ran at a much higher rate, as first-time buyers found it easier to gain access to home loans. | |
| Deposits demanded by lenders are now much higher than three years ago. Earlier this week, the Home Builders Federation said a typical first-time buyer needed to save a deposit of just over £37,000 to buy an average-priced starter home of £155,000. | |
| Building societies | Building societies |
| Low interest rates have also led to savers seeing little return on their money. | Low interest rates have also led to savers seeing little return on their money. |
| The amount of money saved with the UK's mutuals - all building societies and the Co-op bank - fell again last month as people continued to spend rather than save their money, the Building Societies Association (BSA) said. | The amount of money saved with the UK's mutuals - all building societies and the Co-op bank - fell again last month as people continued to spend rather than save their money, the Building Societies Association (BSA) said. |
| Withdrawals outstripped new deposits by £819m in September. | Withdrawals outstripped new deposits by £819m in September. |
| This was the 18th month since the start of 2009 in which outflows of cash from mutuals' savings accounts have been larger than new inflows. | This was the 18th month since the start of 2009 in which outflows of cash from mutuals' savings accounts have been larger than new inflows. |
| "The economic outlook remains challenging for households," said Adrian Coles, director-general of the BSA. | "The economic outlook remains challenging for households," said Adrian Coles, director-general of the BSA. |
| "The labour market remains weak, causing earnings to grow at a rate below current price inflation. It is therefore particularly hard in the current low interest rate environment to attract households to save." | "The labour market remains weak, causing earnings to grow at a rate below current price inflation. It is therefore particularly hard in the current low interest rate environment to attract households to save." |