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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a sign of deepening weakness in the UK housing market, mortgage approvals fell to their lowest monthly level since December 2023. According to Bank of England data, lenders approved just 56,205 mortgages for house purchases in May, a sharp decline reflecting subdued demand. Net mortgage borrowing by individuals also dropped to £2.9 billion from £4.4 billion in April, undershooting the six-month average.
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Sign InThe figures come against a broader economic slowdown; data from the Confederation of British Industry (CBI) released on 23 June 2026 showed industrial order expectations fell to -45 points, worse than the -35 forecast. This dual deterioration in housing and manufacturing suggests increasing pressure on the UK economy, as elevated interest rates continue to weigh on household purchasing power.
Looking ahead, investors are closely watching the Bank of England for signals on the future path of interest rates, especially ahead of upcoming policy meetings. With no major UK housing or credit data in the near-term economic calendar, the focus will shift to upcoming GDP and inflation readings to gauge the extent of the housing market downturn.