UK mortgage approvals fall to lowest level since January 2024 as housing demand weakens

Mortgage approvals for house purchases in the UK fell to their lowest level since January 2024 in July, signalling weaker demand in the housing market as borrowing costs continue to weigh on prospective buyers.According to Reuters, citing Bank of England data, lenders approved 56,053 mortgages for house purchases in July, down from 58,215 in June and below the 59,500 median forecast in a Reuters poll of economists. The figure was also well below the six-month average of around 60,800.Higher mortgage costs weigh on buyersThe decline in approvals points to softer housing activity in the months ahead, as mortgage approvals are an important indicator of future property transactions. The figures suggest buyers remain cautious despite modest growth in house prices.Net mortgage borrowing dropped sharply to £4.3 billion in July from £7.7 billion in June, falling below the previous six-month average of £5.3 billion.