June showed a slight rise in mortgage borrowing, indicating that the housing market could be regaining some stability following a brief halt in the lead up to the previous Brexit deadline of March.
Mortgage approval figures released on Monday by the Bank of England had increased to 66,400 in June which is higher than analysts had expected in its May inflation report. Mortgage approval figures are used as an indicator of future lending.
Net mortgage borrowing for households was also up on May figures, at £3.7 billion. The mortgage lending growth rate however remained stable at 3.1% per annum, where it has been since 2016’s Brexit result.
The impact Brexit has had on the property market has undoubtedly affected London most, with sharp drops in price. More recent data gives cause to be optimistic and this is the message from surveyors polled by the RICS.
Samuel Tombs of Pantheon Macroeconomics consultancy said that as lenders no longer plan to limit the supply of credit, the recent BoE data is “consistent with the economy retaining momentum ahead of the Brexit deadline”.