British lenders approved the fewest mortgages for house purchase since January 2024 in July and consumer lending grew more than expected, according to Bank of England data on Tuesday.
The BoE said lenders approved 56,053 mortgages in July, the lowest since January 2024, below all forecasts in a Reuters poll of economists that had instead pointed to a rise to 59,500. June’s reading was revised up to 58,215 from the 58,200 first reported.
Tuesday’s data showed net unsecured lending to consumers rose by £2.006 billion ($2.71 billion) on the month, above economists’ forecast of a £1.8 billion increase and the biggest rise since November 2025.
“July’s money and lending figures show that the near-term outlook for the housing market is weak, households may have funded some of their spending in July by lowering their saving rate and borrowing more, and overall monetary conditions are not conducive of a long period of high inflation,” said Ruth Gregory, deputy chief UK economist at Capital Economics.
Mortgage lender Nationwide reported earlier on Tuesday that house prices rose 1.6% in the 12 months to August, well below the rate of consumer price inflation.
The central bank is widely expected to keep interest rates unchanged at 3.75% this month, and financial markets are pricing in a quarter-point increase by the end of the year.
($1 = 0.7390 pounds)
(Reporting by Suban Abdulla）
