020 7898 0500While the pound still basked in the increased possibility of a softer Brexit approach, there was some alarming news in the form of UK consumer lending. According to the Bank of England, British consumers borrowed at the weakest rate since November 2015 in July. Consumer credit growth slowed to an annual rate of 8.5% from 8.8% in June.
Mortgage approvals in the UK also disappointed last month, as they fell to 64,768 from a downwardly revised 65,374 in the previous month and below market expectations of 65,000. The releases came around the same time that we learned that house prices in London will fall this year and next. In a poll of housing market specialists it was found that there is even the possibility of a full-blown crash if the UK leaves the EU without a deal.
The problem is thought to be down to the fact that traditional international buyers are staying away from the UK. However, if a deal is reached between the two sides the negative effects of Brexit are likely to be lessened. Speaking of house prices, today we will see the Nationwide housing price figures for August.
