Mortgages, house prices, internet banking and holiday costs

Mortgage lending rose last month to its highest level in eight years as homebuyers appeared to shake off uncertainty prior to the EU referendum. The Council of Mortgage Lenders said that gross mortgage lending reached £20.7 billion, 16 per cent higher than the previous month and the highest figure since 2008. In June last year mortgage lending was £20.1 billion. The Times reports that property transactions rose by 4.9 per cent in June, according to figures from Revenue & Customs, suggesting that homebuyers were not put off by the referendum. There were 94,550 residential property transactions of £40,000 or more last month, showing a steady rise back to normal levels. Meanwhile, the latest Hometrack UK Cities House Price Index reveals that annual house price inflation plateaued at 10.2 per cent in June, the same level as May 2016, but still ahead of 6.9 per cent growth seen in June 2015.

Bristol remains the fastest growing city in the UK with a year on year growth rate of 14.7 per cent, but year-on-year house price inflation in London and in other cities in the south of England, such as Cambridge, Southampton and Bournemouth started to slow between May and June 2016. Conversely, large cities in northern parts of the UK such as Glasgow, Manchester, Liverpool and Leeds have registered strong growth in the last quarter on the back of more affordable prices, lower interest rates, improving local economies and higher yields making purchases attractive to investors.

In other housing news, the age of first-time buyers in England has increased over the past 20 years, up from 30 to 33, according to the latest English Housing Survey published by the Government.

In 2014/2015 the majority of first-time buyers, some 61 per cent, were aged 25 to 34 and this was similar to 1994/1995. But between 1994/1995 and 2014/2015 the proportion of first time buyers aged 16 to 24 fell from 23 per cent to 10 per cent, while the proportion aged 35 to 44 increased from 11 per cent to 20 per cent. The survey, from the Department of Communities and Local Government, also shows that more first-time buyer households were couples than single people, compared with 20 years ago. Banking

The use of internet banking on a computer has fallen for the first time, as users switch to mobile apps. On average, customers logged on to banking websites 4.3 million times a day in 2015, down from 4.4 million in 2014, according to the British Bankers Association (BBA).

At the same time the use of apps – on phones and tablets – went up from 7 million logins a day in 2014, to 11 million last year. In total, customers used such apps 4 billion times in 2015, the BBA said. Family finances Worries around family finances are continuing to affect the younger generation, with a third of eight to 15-year-olds now saying that they worry about money, according to the latest research from the annual Halifax pocket money survey. Despite boys receiving 12 per cent more pocket money than girls (£6.93 vs £6.16), they are now much more likely to worry about money too (37 per cent vs 30 per cent). Twelve months ago, there was no such gender divide, with just one per cent difference in the amount of boys and girls who worry about money and boys receiving just two per cent more pocket money than girls (£6.25 vs £6.14). Retail sales British retail sales suffered their worst monthly fall in six months in June as wet weather dampened appetite for summer clothing. Described by one economist as a ‘taste of weakness to come’ following Britain’s decision to leave the EU, retail sales volumes fell 0.9 per cent between May and June, a greater fall than the 0.6 per cent drop markets had been expecting. Events such as the Queen’s 90th birthday and the Euro 2016 football championship helped boost sales in department stores, but the 39 per cent extra rainfall seen in June caused havoc for clothing retailers who saw a 6.1 per cent fall in their sales volumes. Holiday costs M&S Bank research shows the typical cost of a summer holiday has risen by an average of £357 compared to last year due to the decline in sterling, which has continued to fluctuate following the EU referendum, and rising flight costs. Over half of holidaymakers expect to spend more on their main getaway this year with nearly a quarter of these saying holiday prices are now more expensive. However, families can still save as much as £1,000, or an average of £537, on the cost of  a week-long  holiday simply by choosing alternative destinations in the same country instead of the more popular or better-known resorts. Sports Direct

MPs have accused one of Europe’s biggest retailers of not treating its workers like humans. A report by the Business, Innovation and Skills committee states Sports Direct founder Mike Ashley must be held accountable for company failings.

Evidence suggested Sports Direct’s working practices were similar to those of a Victorian workhouse, one MP said. In response, Sports Direct said in a statement that its policy is to treat all people ‘with dignity and respect’. It comes after Mr Ashley recently told MPs the firm was being investigated over staff being paid below the minimum wage. Union officials told MPs that in one case an employee had given birth in a toilet at the company’s warehouse base in Shirebrook, Derbyshire, because she feared losing her job if she called in sick.