Britain's property market showed signs of a small bounce-back in April, with Bank of England data showing mortgage approvals rising to their highest since January, but broader lending figures suggested the overall economy remained weak.
Britain's economy is struggling to emerge from its second recession since the financial crisis with confidence hurt by the turmoil in the euro zone, and BoE policymaker Paul Fisher warned on Wednesday that it was impossible to rule out a break-up of the currency bloc.
Mortgage approvals numbered 51,823 in April, Bank of England data showed, up from 51,067 in March and well above analysts' forecasts. Net mortgage lending grew by 1.139 billion pounds, also above expectations and the biggest increase since January. Nonetheless, the figures are well below their pre-financial crisis levels, and in real terms property prices are still around 25 percent lower, with most economists forecasting them to remain broadly flat or slightly lower.
The British housing market is also vulnerable to a hit from a deterioration in the euro zone, the stability of which is threatened by worries about Spain's banking system and uncertainty over Greek elections next month. Overall net lending - which includes mortgages as well as consumer credit - rose by 1.407 billion pounds, less than the 1.728 billion pound increase in March. Consumer credit grew by just 268 million pounds, down from 741 million pounds in March, suggesting that the retail sector is likely to remain under pressure, despite Tuesday's relatively upbeat news from the Confederation of British Industry.
Comments
Comments are closed.