UK mortgage approvals fell to 60,463 in April, according to Bank of England data, a larger drop than the 63,000 expected and down from a revised 63,603 in March, reflecting the impact of increased purchase taxes. Net mortgage lending also contracted significantly, falling by £759 million against expectations of a £500 million decrease, signaling a greater-than-anticipated slowdown in the British housing market.
The Bank of England's latest data indicates a more pronounced cooling in the UK housing market than previously anticipated, primarily attributed to market adaptation following increased purchase taxes. Mortgage approvals for house purchase fell to 60,463 in April, a decline from the revised March figure of 63,603 and notably below economists' consensus forecast of 63,000. More strikingly, net mortgage lending contracted by £759 million in April. This represents a significant reversal from the £12.957 billion increase observed in March and surpassed the anticipated decrease of £500 million. These figures collectively signal a sharper deceleration in housing market activity than economists had foreseen, suggesting potential headwinds for sectors reliant on property transactions and overall housing market strength. The moderately negative sentiment and bearish tone associated with this data underscore the market's reaction to this unexpected slowdown.
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moderately negative
Sentiment Score
-0.50
