The British housing market continues to remain buoyant with mortgage approvals in June 2018 reaching a five-month high.
The number of mortgages approved for house purchase increased in June, to 66,000, according to latest statistics released by the Bank of England (BoE). This is the highest number of approvals for the last five months. The number of mortgage approvals are now close to their average since late 2013 in Britain.
In value terms, households borrowed an extra £3.9 billion secured against their homes in June, which slightly exceeded the average of the past year.
This data gives an indication of how much new mortgage lending the British banks can expect to see in coming months. The number of mortgage approvals also indicates the stability in the housing market, which in the past faced challenges following Brexit and its impact on the economy. Though it is early to conclude that the housing market has weathered Brexit, the data provides an optimistic future for the housing market.
The number of approvals for remortgaging witnessed a slight dip in June. The BoE data shows that approvals for remortgaging fell 7.3 per cent in June to 48,000. Despite this fall, remortgaging approvals remain broadly in line with the average over 2018 so far.
These monthly statistics on borrowing and deposits by households and businesses are used by the Bank’s policy committees to understand economic trends and developments in the banking system.