Mortgage approvals in the UK soared to a nine-year high last month, new data from the Bank of England shows.
The number of mortgage approvals rose to 67,086 in October. Consumer borrowing fell to 7.5% in the month, the lowest level since March 2015.
“Over the past two years, mortgage approvals for home purchases have essentially stayed in the 63,000 to 68,000 range,” said Howard Archer, an analyst at EY Item Club.
“Therefore, our recognition that the housing market remains challenging in the face of still limited consumer purchasing power, fragility in consumer confidence, and caution about rising interest rates continues in October. It doesn’t change much with the increase.”
In the most recent month, households borrowed an extra £4.1bn on housing.
Jeremy Leaf, former Royal Institute of Chartered Surveyors (RICS) housing chairman and estate agent, said: ‘Surprisingly, we have seen an increase in inquiries over the last few weeks and there is a feeling of concern between buyers and sellers. I feel it is there,” he said. They are tired of sitting on the sidelines and are not prepared to postpone their important decisions any longer. ”
Earlier this week, British Investors Magazine reported that there were signs of recovery in Aberdeen’s housing market, where house prices rose for the first time in two years.
Jacqueline Law, managing partner at Aberdeen Considine, said: “Aberdeen’s turnaround is good news after a long and difficult period and shows the North East is beginning to emerge from one of its most difficult downturns. I hope it’s something.”
The Bank of England also reported on Thursday about the impact of a no-deal Brexit scenario. Click here for details.
