Home loan approvals in the UK climbed in July from an 18-month low in June, when an additional public holiday slowed the housing sector, noted the Bank of England (BoE).
Mortgage approvals rose to 47,312 in July compared to 44,124 in June. However, it is still below the average for the previous six months of 50,729, according to a Bloomberg News Survey.
Nonetheless, net mortgage lending climbed £1.13 billion (S$2.24 billion) in July from June, but net consumer credit fell £220 million (S$437 million), reported the central bank.
“Mortgage activity remains very close to record low levels since early 2010, a sign that the housing market is struggling to improve,” said Annalisa Piazza, an analyst at Newedge Group.
Piazza added that “it will take a few months to see the effects of the additional policy accommodation. Until then, we expect housing activity to remain very subdued”.
Moreover, the BoE and Treasury are evaluating the impact of the Funding for Lending Scheme, which is designed to increase credit for households and businesses.
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