UK debt approvals strike 15-month low in Nov – UK Finance

LONDON (Reuters) – British banks authorized a fewest mortgages in 15 months in November, when a Bank of England lifted seductiveness rates for a initial time in some-more than a decade, attention total showed on Thursday.

Banks authorized 39,507 mortgages for residence squeeze final month, down from 40,417 in Oct and 5 percent fewer than in Nov 2016, trade organisation UK Finance said.

At a start of a month, a Bank of England lifted seductiveness rates from a record low 0.25 percent to 0.5 percent.

“Housing marketplace activity stays underneath vigour from squeezed consumer finances and frail confidence, and it might good have taken a serve hole in Nov from a Bank of England lifting seductiveness rates,” Howard Archer, arch mercantile confidant to a EY ITEM Club consultancy, said.

A Reuters check of economists final week suggested British residence prices will arise small some-more than 1 percent subsequent year, with those in London set to tumble for a initial in 8 years.

Last month, financial apportion Philip Hammond sought to offer electorate some service with spending skeleton that focused on housing, including scrapping a skill squeeze taxation for many first-time home-buyers.

“Even if successful, (Hammond‘s) measures to boost residence building in November’s bill will take time to have a poignant outcome so are doubtful to considerably change residence prices in a nearby tenure during least,” Archer said.

More extensive lending total from a Bank of England are due subsequent Thursday.

Reporting by Andy Bruce; modifying by John Stonestreet

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