Real Estate

UK mortgage approvals hit highest level since early 2017


British banks last month approved the largest number of mortgages since February 2017, pointing to the stabilisation of the housing sector that has been hit by uncertainty surrounding Brexit.

The total number of mortgages approved by the main high street banks rose to 43,000 in April, up from 40,600 the previous month, according to data from UK Finance, a trade body.

The rise corresponds to an 11.5 per cent annual increase, marking the sharpest rate since March 2016.

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March” said Howard Archer, chief economic advisor at EY ITEM Club, a consultancy.

While a strong labour market, a shortage of houses and very low-interest rates are supportive of a strong housing market, Brexit angst has weighed on the property market with slowing house prices growth and weak mortgage uptake follow the referendum in 2016.

The UK Finance report is compiled based on data from seven high street banking groups, which account for roughly two-thirds of the overall market. Broader mortgage figures will be released by the Bank of England on Friday.



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