Saturday, July 12, 2025

Latest

UK Housing Market Slowdown: Lenders are Approving Fewer Mortgages as Inflation, Rising Interest Rates Bite

The UK housing market is rapidly slowing, as surging inflation and subsequent rising interest rates bring what was once rapid growth to a near-standstill.

Latest data from the Bank of England shows significantly fewer borrowers are getting approved for mortgages, as higher interest rates ripple through the economy. Lenders approved a total of 58,977 home mortgages in October, marking the lowest since June 2020, and a modest decline from the 65,967 approved in the month prior. The net increase in lending last month came in at 3.966 billion pounds, which a stark drop from the 5.878 billion pounds reported in September.

Still, borrowing among consumers rose by 769 million pounds in net terms during that period, marking a slight increase from the 608 million pound increase in September. “October’s money and credit figures reveal further signs that households continue to remain cautious and higher interest rates are starting to weigh on the economy,” said Capital Economics economist Ashley Webb, as cited by Reuters.

Lenders temporarily halted mortgage loans in wake of former Prime Minister Liz Truss’s disastrous mini-budget of unfunded government spending and tax cuts, which prompted pension funds to abruptly unload assets, forcing the central bank to intervene and stabilize the guilds market. The BOE data also underscores the impending slowdown in the UK housing market, with home prices forecast to fall 5% in 2023, as per projections by economists polled by Reuters.

Information for this briefing was found via the Bank of England and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Bank of Canada Keeps Rates At 0.25%, Will Continue Bond Purchases

Despite the optimistic trajectory of Canada’s economic recovery, the Bank of Canada once again reiterated...

Thursday, March 11, 2021, 10:29:00 AM

America’s Economic Productivity Slumps to Weakest Since 1947 While Labour Costs Soar

America’s economy is falling behind. US productivity fell by the most on record in the...

Wednesday, August 10, 2022, 03:44:00 PM

Federal Reserve Hikes Rates 25 Basis Points, Hints At More Future Increases

As widely expected, the Federal Reserve hiked borrowing costs another 25 basis points, wrapping up...

Wednesday, February 1, 2023, 02:12:41 PM

General Mills: Inflation Forecasted To Hit Mid-Single Digits

Cinnamon Toast Crunch debacle aside, it appears General Mills may have a lot more to...

Sunday, April 4, 2021, 11:31:00 AM

Canada’s Labour Market Refuses to Cool, Adds Another 150K Jobs in January

Canada’s labour market surprisingly expanded at a much faster pace than expected last month, in...

Friday, February 10, 2023, 09:31:03 AM