The amount of new home loans in the UK slipped to the lowest level in nearly a year. Statistics from the Bank of England showed mortgage approvals had fallen to a nine-month low. This may be the most troubling sign yet as the housing markets continues to struggle in the midst of Britain’s exit from the European Union.
Mortgage Approval Data
According to data collected by the Bank, there were a total of 64,684 approvals last month. This figure was down from 65,109 in May, and the lowest overall since last September. What these numbers suggest is that more and more citizens are fearful of creating possible long-term debt.
Just last week, house prices saw a growth of 4.7%. But many believed this was simply due to a few select markets that drove up prices. Wales, Kensington, and Chelsea were the three markets that may have been responsible for the inflated numbers. Business pundits did not think the increasing trend would last much longer.
Once again, Brexit is the main culprit in the failing housing market. Experts had long predicted the political upheaval would cause many markets to pause until resolution was reached. Right now, Britain is currently stuck in a war of words with the EU. The Union is having trouble believing any of Britain’s so-called threats as they look to vacate. The Union believes it holds all valuable resources – laws, regulations, and financials. The ongoing conversations have certainly taken a toll on many markets; housing included.
Financial Statistics Across The UK
The housing market isn’t the only sector suffering in the UK. Citizens have been hit hard in a variety of ways in recent times. Consumer debt continues to hover around 10 percent. Credit card debt has risen more than nine percent in the past few months. Data collected in June showed housing price inflation had hit a four-year low. And although the house price index rose to 4.7% in May, it was a decrease from the 5.3% growth in the month prior.