You are here: Home - News -

BoE data highlights contracting property market

  • 31/05/2017
  • 0
BoE data highlights contracting property market
Approvals for house purchase and remortgaging loans fell further in April, confirming a 7% transaction drop since the start of the year.

Data from the Bank of England showed that 118,370 loans for house purchase and remortgage were approved in April, down from 127,745 in January.

Remortgaging was hardest hit (down 11%) with house purchase loans slightly less badly affected (down 6%). (See graph)

The drops were another indication of the slowing property market around the country since the start of 2017.

Perhaps encouragingly, gross mortgage lending was £21.3bn for April, up slightly on the previous month (£20.9bn) and the six-month average (£20.6bn).

However, net lending on properties slipped to £2.7bn in April – its lowest figure since April 2016, according to the Bank of England.


Not unexpected

Hope Capital CEO Jonathan Sealey said the falls were not unexpected considering the snap general election and ongoing Brexit uncertainty.

“It’s promising to see that gross mortgage lending in April was higher than the six-month average, suggesting that the UK’s housing market has once again remained steady,” he said.

“The months and weeks that precede such an event are typically and understandably quieter, as housing demand drops as more people adopt a more cautious approach.

“However, it is likely that activity will soon again pick up afterwards, and now that the main political parties have outlined significant housing promises in their manifestos, the elected government must follow through with their housing election pledges in order to tackle the housing crisis head on,” he added.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Jo Wilson from Legal & General Home Finance talks about her Best BDM nomination and her love for the equity release…
  • Sponsored content: Four reasons your client wants a product transfer by Halifax Intermediaries…
  • Nationwide trims rates as Accord ups cashback on buy-to-let deals -

Read previous post:
Martin Stewart London Money
Mortgage club The Adviser Alliance launches

The Adviser Alliance, a new mortgage club promising to “disrupt” the traditional club model, has officially launched.