The UK housing market showed fresh signs of recovery last month, as mortgage approvals rose more than expected, according to new figures released by the Bank of England.
Lenders approved a total of 64,167 mortgages in June, up from 63,288 in May, and exceeding economists’ forecasts of 63,000 approvals. The rebound follows a temporary dip in the market after the stamp duty exemption for first-time buyers expired in April, which saw mortgage approvals fall to just over 60,000 that month.
The stronger-than-expected figures suggest the market has begun to stabilise after the disruption caused by the end of the tax break, which had been introduced to stimulate activity among first-time buyers and support housing demand during a period of broader economic uncertainty.
The Bank of England also reported a notable rise in unsecured consumer borrowing, which increased by £1.42 billion in June. This was well above the £1.2 billion forecast by economists and marked a significant jump from the £920 million rise recorded in May.
The data points to a more resilient consumer outlook, even as households continue to face pressure from elevated living costs and higher interest rates. Analysts said the uptick in borrowing could reflect growing confidence among consumers, particularly as expectations for interest rate cuts later this year begin to solidify.
Taken together, the figures offer cautious optimism that the housing and consumer credit markets are beginning to regain momentum following a period of softness earlier in the year.
