The total amount of net lending to individuals in the UK rose by £2.0 billion pounds in January. This is a growth rate of 0.8% for the 12 month period leading into the month. The figures were revealed in the recent “Bank of England’s Lending to Individuals: January 2010 report.”
The three-month annualised growth rate was 1.3%, a 0.4 percentage point increase from a revised 0.9% for December. Within the total, net lending secured on dwellings increased by £1.5 billion, above the December increase of £1.2 billion and the previous six-month average of £1.0 billion.
The news is likely to be viewed as positive within the debt collection industry as people start to loan again the chances of bad debt accruing will increase alongside it.
The twelve-month growth rate ticked up to 1.0%, from 0.9% in December. The three-month annualised growth rate rose to 1.4%. The number of loan approvals for house purchase (48,198) was lower than the December figure (58,223) and below the previous six-month average (55,924); approvals for remortgaging (23,611) and for other purposes (23,035) were also lower than in December and lower than their respective six-month averages.
Consumer credit increased by £0.5 billion, above the previous six-month average of a net repayment of £0.2 billion, and also above December’s net increase of £0.3 billion. Credit card lending increased by £0.2 billion and other loans and advances increased by £0.3 billion. The annual growth rate of consumer credit was less negative at -0.2%; the three-month annualised growth rate increased to 0.7%.
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