Real Estate
UK Mortgages Set for Slowest Year Since 2011 as House Prices Dip
- High interest rates and living cost crisis will cut demand: EY
- Bank lending to businesses expected to drop as growth stutters
The last time lending for home-buyers was this slow was 2011
Photographer: Ian Forsyth/BloombergThis article is for subscribers only.
Mortgage lending is expected to grow at its slowest rate in more than a decade amid Britain’s rising interest rates and falling house prices, according to a report published Monday.
Demand for mortgages is set to increase just 0.4% this year, down from 4.1% in 2022, research from accounting firm EY said. That’s due to a toxic mix of rising borrowing costs, inflation-squeezed incomes and house prices that are falling but still very high by historical standards.