UK Housing Market Activity Slows Amid Uncertainty

The Bank of England's latest Money and Credit figures show that mortgage approvals fell in July to 56,100, below the recent six-month average of around 60,800. According to Richard Pike from Phoebus Software, this could be a temporary setback rather than a wider slowdown.

Jason Tebb from OnTheMarket notes that ongoing political and economic uncertainty is impacting buyer and seller decision-making, while Gareth Lewis from MT Finance believes there urgently needs to be stimulus for the housing market. Jeremy Leaf, a north London estate agent, agrees that approvals are a good indicator of activity over the next three months at least.

Mortgage borrowing fell sharply from £7.7bn to £4.3bn in July, and net mortgage approvals for house purchase dropped significantly, suggesting softer activity in the months ahead. The effective rate on newly drawn mortgages rose from 4.35% to 4.45%, making affordability stretched for many prospective buyers.