British lenders reduced the availability of mortgages and other secured lending to households for the first time in three years during the three months to the end of August, a Bank of England survey has shown.
Demand from households for mortgages also fell, according to the BoE’s quarterly Credit Conditions Survey, dropping by the most since the early 2023, though a recovery was predicted for the current quarter.
The figures chime with separate BoE data which showed the number of mortgages approved for house purchase in August fell to its lowest since December 2023.
The Royal Institution of Chartered Surveyors has said that the prospect of higher Bank of England interest rate was weighing on Britain’s property market.