LONDON (Reuters) -British lenders approved more mortgages in September than in any month so far in 2025, according to Bank of England data that ran counter to other recent signs of wariness in the housing market ahead of finance minister Rachel Reeves’ budget.
Mortgage approvals for home purchases totalled 65,944, the highest figure since December 2024, the BoE said on Wednesday.
The number was above the median forecast of 64,000 in a Reuters poll of economists.
Reeves is expected to raise taxes in her budget on November 26 with higher levies on property purchases or home ownership among the measures that could be announced.
Other measures of Britain’s housing market have suggested caution among buyers ahead of the budget.
The BoE’s data also showed consumers were not cutting back on their borrowing sharply in the run-up to the tax and spending plan.
Net consumer borrowing rose by 1.491 billion pounds ($2.00 billion) in September, roughly in line with a 1.5 billion-pound forecast in the Reuters poll of economists.
While the increase was down slightly from August’s 1.749 billion pound rise, it took the annual rate of consumer credit growth to 7.3% from 7.2% in August, the fastest pace of growth since October 2024.
Official data published last week showed retail sales unexpectedly rose by 0.5% in September.
“Overall these figures are consistent with our view that consumer spending growth will strengthen over the coming quarters,” Alex Kerr, UK economist with Capital Economics, a consultancy, said.
“But the risk is that tax rises on households in the budget dampen activity next year.”
($1 = 0.7451 pounds)
(Writing by William Schomberg)
