UK Mortgage Approvals See Sharpest Drop in Over a Year Following Budget Impact

November mortgage approvals fell to 65,700 as tax changes and high interest rates weigh on buyer confidence.

Mortgage approvals in November dropped by 2,400 to 65,700, marking the largest decline since August 2023, according to Bank of England data.
The decline contrasts with market expectations of 68,500 approvals and ends a streak of consecutive monthly increases.
Experts attribute the drop to Rachel Reeves's October Budget, which introduced significant tax hikes and changes to stamp duty thresholds, dampening economic confidence.
Higher borrowing costs continue to pressure the market, with average five-year fixed mortgage rates rising from 5.05% in October to 5.24% in January, increasing annual costs for borrowers.
Consumer credit growth also slowed to its weakest pace since mid-2022, reflecting broader signs of a slowing UK economy.