Unlock the Editor’s Digest totally free
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
UK mortgage approvals rose for the primary time this 12 months in Could, defying expectations and pointing to a restoration within the housing market after the tip of the stamp obligation vacation.
Web mortgage approvals for home purchases elevated by 2,400 to 63,000, the primary enhance since December 2024, the Bank of England stated on Monday.
Economists polled by Reuters had anticipated a decline in approvals to 59,750.
Approvals for remortgaging additionally elevated by 6,200 to 41,500 in Could, the biggest enhance since February 2024.
The info factors to an bettering housing market, although stamp obligation thresholds reverted to pre-2022 ranges on April 1, rising prices for a lot of property consumers.
First-time consumers, for instance, began paying the levy for properties price £300,000 or extra, as an alternative of the earlier threshold of £425,000.

Separate official knowledge published earlier within the month confirmed that UK home costs declined at their quickest month-to-month tempo in almost 4 years in April.
Stephanie Daley, director of partnerships at mortgage adviser Alexander Corridor, stated: “The market has bounced again now that the uncertainty of the latest stamp obligation deadline has handed.”
With rates of interest displaying larger stability and lots of lenders persevering with to supply a aggressive vary of sub-4 per cent mortgages, “circumstances stay supportive for each first-time consumers and residential movers”, she added.
The BoE knowledge additionally confirmed that the “efficient” rate of interest — the precise curiosity paid — on newly drawn mortgages decreased to 4.47 per cent in Could from 4.49 per cent in April, and the bottom since April 2023.
Nevertheless, the speed on the excellent inventory of mortgages elevated barely, to three.87 per cent, the very best since 2009, highlighting the cumulative affect of will increase in rates of interest because the Financial institution of England began elevating borrowing prices in 2021.
Markets are pricing a 72 per cent chance that the BoE will reduce rates of interest by 1 / 4 level from the current 4.25 per cent on the subsequent assembly on August 7. That may be the fifth decline in borrowing prices since final summer time as inflation fell from the multi-decade excessive reached in October 2022.
Pete Mugleston, managing director at On-line Mortgage Advisor, stated a charge reduce may result in extra folks shopping for property, “which might be a sorely wanted enhance to the economic system”.
BoE shopper credit score knowledge additionally confirmed that web borrowing by people decreased to £859mn in Could, from £1.9bn within the earlier month and the bottom since April 2024.
Ashley Webb, economist on the consultancy Capital Economics, the determine means that the sharp 2.7 per cent decline in retail gross sales between April and Could, reported earlier within the month by the Workplace for Nationwide Statistics, “wasn’t offset by stronger non-retail spending”. He added that this supported his view “that there’s little or no momentum in exercise in Q2”.