UK mortgage approvals and borrowing rise in June

Mortgage approvals and borrowing in the UK rose in June, according to the latest Bank of England data, offering a sign of tentative market stability amid persistent economic headwinds. Net mortgage approvals for house purchases increased to 58,200 in June, up from 56,600 in May. Net mortgage borrowing by individuals more than doubled to 7.7 billion pounds, a significant jump from 3.3 billion pounds in May and the highest figure since March 2025.

Industry figures pointed to a period of relative economic calm as a key factor. Nathan Emerson, chief executive of Propertymark, said a consistent Bank of England base rate, competitive mortgage products, easing inflation, and a temporary reduction in geopolitical tensions likely supported buyer confidence during the month. He noted that as inflation continues to ease, households should benefit from greater financial certainty, aiding prospective buyers.

However, the modest rise in approvals remains below the recent six-month average of around 61,400, indicating the market has not fully recovered. Iain McKenzie, CEO of The Guild of Property Professionals, said buyers are still proceeding with caution. He described a market entering a...