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Brexit uncertainty goes on as mortgage approvals drop 10% year-on-year

Brexit uncertainty goes on as mortgage approvals drop 10% year-on-year

The latest Bank of England data on mortgage approvals - a key barometer for likely transactions for agents - shows Brexit uncertainty continuing to dog the market.

On the one hand the figures for September, released yesterday by the Bank of England, reveal that mortgage approvals were rebounding from their summer lows immediately following the June 23 EU referendum.

On the other hand, the figures show a 10 per cent drop in approvals compared to September last year, and are down 12.4 per cent in the past three months.

Approvals for house purchases - not including remortgaging and other loans - rose to 62,932 in September from 60,984 in August.

Last week figures from the British Bankers' Association - considered less authoritative than the Bank of England by many housing market analysts - suggested a 15 per cent fall in approvals over the year, despite a month-on-month increase over the August figures.

Investment consultancy Jefferies reacted negatively to the BoE data. Its analyst Sam Cullen warns: "Slower approvals in the final months of 2016 will depress housing transactions in early 2017."

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