Mortgage approvals fell to their lowest level since June 2020 in November as activity in the housing market eased following a rush last year caused by the stamp duty tax holiday.
Lenders sanctioned 67,000 mortgages in November, a slight dip on the 67,199 home loans approved in October, according to Bank of England data, while net borrowing increased to £3.37 billion from £1.1bn the previous month.
“November’s increase follows low net lending figures in October after borrowing was brought forward to September to take advantage of stamp duty land tax relief, before it was completely phased out,” the BoE said.
“The net borrowing in November was however £2.9 billion below the 12-month average to June 2021, when the full stamp duty holiday was in effect.”
The flat mortgage approval rate, which acts as an indicator of future borrowing, was the lowest since the middle of 2020 when the market was just emerging from the first lockdown. However, it was close to the 12-month average seen in the run-up to February 2020 before the pandemic brought the country to a standstill.
Meanwhile, approvals for remortgaging, which only analyses new home loans with a different lender, rose to 44,500 in November.
Independent housing analyst Anthony Codling said the latest mortgage data indicated that Britain's housing market has quickly returned to normal without the tax incentive.
“Perhaps, when it comes to moving home, macroeconomic events do not impact household decisions as much as we may believe. If you have changed job or your family has outgrown its current home, concerns about inflation and Covid are secondary, and if you have to move, you generally do," he said.
Separately, British consumers increased their borrowing in November by the most in 16 months, with consumer credit rising by a net £1.2bn, more than expected and much higher than the £0.8bn uplift in October.
With £0.9bn of that increase borrowed on credit cards, it was a further sign the economy was picking up before fears over the spread of the Omicron variant of coronavirus set in.
Household cash deposits also grew at a slower rate in November indicating stronger consumer confidence ahead of the festive month.
However, Bethany Beckett, UK economist at Capital Economics,said the data seemed like “old news” when compared against surging Covid-19 cases in December, which is expected to see households less willing to borrow.
With real household income facing a squeeze in 2022 amid higher inflation, rising energy bills and increased taxation, “we suspect consumer spending may struggle to make much headway over the next few quarters” Ms Beckett added.
Mohammed bin Zayed Majlis
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
COMPANY%20PROFILE
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Under-21 European Championship Final
Germany 1 Spain 0
Weiser (40')
UAE currency: the story behind the money in your pockets
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Champions League Last 16
Red Bull Salzburg (AUT) v Bayern Munich (GER)
Sporting Lisbon (POR) v Manchester City (ENG)
Benfica (POR) v Ajax (NED)
Chelsea (ENG) v Lille (FRA)
Atletico Madrid (ESP) v Manchester United (ENG)
Villarreal (ESP) v Juventus (ITA)
Inter Milan (ITA) v Liverpool (ENG)
Paris Saint-Germain v Real Madrid (ESP)
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
THE%C2%A0SPECS
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Look%20Both%20Ways
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Company%20Profile
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Meydan card
6.30pm: Al Maktoum Challenge Round-1 (PA) Group 1 US$65,000 (Dirt) 1,600m
7.05pm: Conditions (TB) $100,000 (Turf) 1,400m
7.40pm: UAE 2000 Guineas Trial (TB) $100,000 (D) 1,600m
8.15pm: Handicap (TB) $175,000 (T) 1,200m
8.50pm: Al Maktoum Challenge Round-1 (TB) Group 2 $350,000 (D) 1,600m
9.25pm: Handicap (TB) $175,000 (D) 1,900m
10pm: Handicap (TB) $135,000 (T) 1,600m
