UK housing market rebounds with record mortgage approval

British lenders approved 65,647 mortgages in September, according to the Bank of England (BOE), marking the highest figure since August 2022, just before the “mini-budget” bond market crisis under former Prime Minister Liz Truss.

This figure slightly exceeded the median forecast of 65,000 from a Reuters poll of economists.

The rebound in the housing market follows the Bank of England’s decision to cut interest rates in August for the first time since 2020. The Royal Institution of Chartered Surveyors reported increases in house prices, sales, and enquiries for the same month.

Additionally, the BoE noted a decline in consumer net borrowing, dropping to £1.23 billion ($1.60 billion) in September from £1.35 billion in August, contributing to an annual growth rate in consumer credit of 7.5 per cent, the slowest increase in over a year.

Consumer confidence appears to be waning ahead of this week’s budget announcement from the new government, which may include tax increases. Prime Minister Keir Starmer has indicated that the burden of financial repairs will primarily fall on those with the greatest means.

Attribution: Reuters

Subediting: M. S. Salama