Mortgage Approvals Plummet as UK House Prices Edge Up
The number of mortgage approvals for home-buyers in the UK has fallen to its lowest level in more than two years, according to Bank of England figures.
In July, there were 56,053 mortgage approvals made to home-buyers, down from 58,215 in June. This is the lowest monthly figure since January 2024, when there were 56,032 approvals.
The average UK house price has edged up by 0.2% month-on-month in August, according to Nationwide Building Society, with the average price now standing at £275,465, a 1.6% annual increase.
Experts attribute the decline in mortgage approvals to rising fixed rate mortgage costs and geopolitical tensions. 'The increase in fixed rate mortgage costs we saw in mid-July has prevented that from translating into any improvement in activity in the market,' said Lucian Cook, head of residential research at Savills.