Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

BoE: House Purchase Approvals Rise in June, But Market Recovery Uneven

House purchase approvals in the UK increased to 58,200 in June, according to the Bank of England’s latest Money and Credit report. Despite this rise, approvals remained below the six-month average of 61,400, indicating that the property market’s recovery is still inconsistent.

The report also noted that remortgage approvals increased by 400 from May, reaching 34,200 in June. Secured gross lending edged up to £27.4 billion in June, slightly higher than May’s £27.2 billion and above the six-month average of £26 billion. Meanwhile, repayments decreased to £21.3 billion in June from £22.7 billion in May, but stayed above the six-month average of £20.4 billion.

Net borrowing of mortgage debt by individuals rose to £7.7 billion in June from £3.3 billion in May, surpassing the previous six-month average of £4.9 billion. The annual growth rate for net mortgage lending also increased slightly to 3.6% in June from 3.5% in May.

The average interest rate on newly drawn mortgages climbed to 4.35% in June, up from 4.22% in May. The rate on the outstanding stock of mortgages also rose, reaching 3.96% in June compared to 3.92% in May.

Industry figures highlighted that while the increase in house purchase approvals is a positive sign, the numbers remain below recent averages, reflecting ongoing political and economic uncertainty. The appointment of Andy Burnham as Prime Minister was noted as putting housing high on the government’s agenda, though the impact of this shift remains to be seen. Calls for government action to stimulate the housing market and address funding costs were also reported.

For letting agents and inventory clerks, these trends suggest continued caution in the market, with fluctuating mortgage rates and uneven buyer confidence likely to influence rental demand and property transactions in the coming months.