British mortgage approvals soared to their highest level in 13 years in November when most of the country was in lockdown, while consumer borrowing showed a record annual decline, according to the Bank of England.
UK lenders approved 104,969 mortgages in November – the highest level since the financial crisis . Unsecured lending to consumers was 6.7 per cent lower than in November 2019, the biggest fall since monthly records began in 1994.
“This was the highest number of approvals since August 2007 and recent strength in approvals has almost fully offset the significant weakness earlier in the year,” the Bank of England said.
The UK property market experienced a surge over the summer on the back of pent-up demand following the first lockdown at the height of the pandemic that shuttered the sector, and UK finance minister Rishi Sunak's tax break.
The Stamp Duty Land Tax holiday, which offers buyers savings of up to £15,000, expires on March 31.
Despite the pandemic, there were 715,300 house purchase approvals up to November, close to the same number over the same period in 2019.
Ruth Gregory, senior UK economist at Capital Economics, said the sharp rise in the number of new mortgages in November, up from the 98,338 in October, leaves approvals 43 per cent above their pre-crisis level.
“At the very least, stronger household balance sheets should mean that there is plenty of scope for household spending, and GDP (gross domestic product), to rebound strongly once the restrictions are eventually lifted,” she said.
However, mortgage lender Nationwide expects the market to slow this year when the tax break expires in March, despite house prices rising 7.3 per cent in December to record their biggest annual increase in six years.
The strength in the housing market contrasts sharply with the wider economy, which is battling falling output and rising unemployment, with Nationwide saying the outlook for prices this year is highly uncertain.
Meanwhile, unsecured lending to consumers continued to fall at a record pace, as many Britons reined in spending during the November lockdown when non-essential retailers, as well as bars and restaurants, were closed across most of the country.
Net consumer lending dropped by £1.539bn in November, a decline of 6.7 per cent from November 2019 and the biggest drop since monthly records began in 1994.
“Households' reduced ability to consume during November’s lockdown meant that they repaid £1.5bn of unsecured loans. Admittedly, that was a less rapid deleveraging than during the lockdown in March 2020 when households paid back £3.1bn,” said Ms Gregory.
While borrowing reduced, household deposits surged by almost £18bn, potentially providing fuel for consumer spending once restrictions are lifted.
The UK economy could grow by 8 per cent in 2021 – the highest jump since the Second World War – partly driven by spending from consumers who have built up £200bn in savings during the Covid-19 lockdowns, according to the Centre for Economics and Business Research.
Meanwhile, non-financial corporates borrowed an extra £2bn from banks in November, a huge decline on the £31bn they added to their debt pile at the height of the crisis in March.
“It was largely small businesses that were still scrambling for cash. They borrowed an additional £1.8bn from banks in November, compared with borrowing of £0.2bn by large businesses,” said Ms Gregory.
Separately, UK manufacturing recorded its strongest growth since 2017 in December on the back of stockpiling ahead of the end of the Brexit transition period on December 31.
The IHS Markit/CIPS manufacturing Purchasing Managers' Index (PMI) for December rose to 57.5 from November's 55.6, its highest level since November 2017 and slightly above an initial flash estimate of 57.3.
Anything above 50 on the manufacturing activity gauge indicates growth, while a reading under that level means contraction.
The latest reading showed factories rushed to complete work before the end of the post-Brexit transition period on December 31, as manufacturers stockpiled materials at the fastest rate since March 2019 amid fears of disruption to trade with the EU.
There were delays at British ports throughout December, with lengthy queues forming at Dover just before Christmas after France shut the border following the identification in Britain of a new mutant strain of coronavirus.
Rob Dobson, IHS Markit director, said he did not expect December's manufacturing surge to last.
"Customers, especially those based in the EU, brought forward purchases, boosting sales temporarily. It seems likely that this boost will reverse in the opening months of 2021, making for a weak start to the year," he said.
In the eurozone, manufacturers also ended 2020 on a high, with activity in the sector increasing at its fastest pace since mid-2018.
Germany was the driving force, and in contrast to the bloc's dominant service industry, the area's manufacturing PMI rose to 55.2 in December from November's 53.8.
UAE currency: the story behind the money in your pockets
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
South Africa squad
Faf du Plessis (captain), Hashim Amla, Temba Bavuma, Quinton de Kock (wicketkeeper), Theunis de Bruyn, AB de Villiers, Dean Elgar, Heinrich Klaasen (wicketkeeper), Keshav Maharaj, Aiden Markram, Morne Morkel, Wiaan Mulder, Lungi Ngidi, Vernon Philander and Kagiso Rabada.
SERIE A FIXTURES
Friday (UAE kick-off times)
Sassuolo v Bologna (11.45pm)
Saturday
Brescia v Torino (6pm)
Inter Milan v Verona (9pm)
Napoli v Genoa (11.45pm)
Sunday
Cagliari v Verona (3.30pm)
Udinese v SPAL (6pm)
Sampdoria v Atalanta (6pm)
Lazio v Lecce (6pm)
Parma v Roma (9pm)
Juventus v Milan (11.45pm)
Killing of Qassem Suleimani
The specs: 2018 Harley-Davidson Fat Boy
Price, base / as tested Dh97,600
Engine 1,745cc Milwaukee-Eight v-twin engine
Transmission Six-speed gearbox
Power 78hp @ 5,250rpm
Torque 145Nm @ 3,000rpm
Fuel economy, combined 5.0L / 100km (estimate)
The 12
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
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What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
The details
Heard It in a Past Life
Maggie Rogers
(Capital Records)
3/5
Killing of Qassem Suleimani
BLACKBERRY
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Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
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A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
UAE currency: the story behind the money in your pockets
The specs
Price: From Dh529,000
Engine: 5-litre V8
Transmission: Eight-speed auto
Power: 520hp
Torque: 625Nm
Fuel economy, combined: 12.8L/100km
KILLING OF QASSEM SULEIMANI
MATCH INFO
League Cup, last 16
Manchester City v Southampton, Tuesday, 11.45pm (UAE)
Monster Hunter: World
Capcom
PlayStation 4, Xbox One
The specs: 2017 Lotus Evora Sport 410
Price, base / as tested Dh395,000 / Dh420,000
Engine 3.5L V6
Transmission Six-speed manual
Power 410hp @ 7,000rpm
Torque 420Nm @ 3,500rpm
Fuel economy, combined 9.7L / 100km
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Isle of Dogs
Director: Wes Anderson
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
FIGHT%20CARD
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Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
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