Growth in home lending continued to slow in July as banks and regulators moved to cap investor activity, meaning the brakes may soon be applied to booming house prices.

The value of home loans approved in July rose 1.5 per cent, with loans to owner-occupiers up 2.2 per cent, and up 0.5 per cent to investors. Investor lending growth has slowed in recent months, with the annual rate of 16.5 per cent in July down from 29 per cent…