UK Mortgage Approvals Fall as Experts Urge Autumn Budget Stimulus

Net mortgage approvals for house purchases fell to 56,100 in July, down from 58,200 in June, according to the Bank of England's Money and Credit report. This decline marks a 3.7% month-on-month drop and a 15.0% year-on-year decrease. Gareth Lewis, deputy CEO of specialist lender MT Finance, notes that approval numbers had been picking up before dipping in May and now falling again due to the unstable interest rate environment.

Property experts are calling on the prime minister to introduce measures to boost the housing market in the autumn budget. Anthony Codling, managing director at RBC Capital Markets, agrees that the UK mortgage approvals for house purchase fell significantly, sitting 7.3% below the five-year average and 13.0% below the ten-year average.

Nathan Emerson, CEO at Propertymark, attributes the figures to continued pressure on household finances, suggesting that buyers may be holding back until there is greater economic clarity. The autumn budget next month may provide some relief as mortgage approvals and net lending could find a firmer footing, although this remains closely aligned with the wider global economy.