UK Mortgage Approvals Hit Lowest since June 2020 : BoE

UK Mortgage Approvals Hit Lowest since June 2020 : BoE

TEHRAN (Tasnim) – The number of mortgages approved by lenders in Britain fell in October to its lowest level since June 2020, according to Bank of England data on Tuesday that underscored a sharp slowdown underway in the housing market.

Lenders approved 58,977 mortgages for house purchase last month, down from 65,967 in September. A Reuters poll of economists had pointed to approvals of 60,200.

Britain's housing market is showing clear signs of slowing, with various gauges of house prices now showing cooling inflation after rapid growth during the pandemic.

A Reuters poll of economists and property market analysts last week showed house prices are forecast to drop around 5% next year, having risen about 24% since early 2020, according to official data.

Tuesday's BoE data showed the net increase in mortgage lending in October was smaller than expected at 3.966 billion pounds ($4.75 billion), down sharply from 5.878 billion pounds in September and marking the lowest reading since November 2021.

Consumer borrowing increased in net terms by 769 million pounds in October, picking up slightly from September's 608 million pounds rise.