- Michael Saunders, economist at survey sponsor Citi
The number of new mortgages approved in the UK declined in September to a 14-month low, adding to latest evidences Britain's housing market is cooling. Mortgage approvals fell to 61,267, the lowest level since July 2013, down from 64,054 in August, the Bank of England reported. New approvals have been dropping since January, when they reached the highest level in six years of 76,295. Mortgage lending has been cooling since April, when the Bank of England implemented stricter mortgage rules to keep lending in check. Recently policy makers said that house-price growth is slowing to a "more sustainable pace." Lending to British businesses also declined, the BOE added. Loans to nonfinancial firms fell in September by 0.7 billion pounds, compared with the 0.9 billion pounds increase in August. Overall net consumer borrowing surged 2.7 billion pounds, compared with the gain of 3.2 billion pounds a month earlier. Despite being strong, it is the lowest increase since February this year, following a small decline in consumer confidence and retail sales. Also, a separate report showed Britons' expectations for inflation over the coming twelve months remained unchanged at 1.9% in October, in line with the lowest figure since 2009. Inflation expectations for the next five to ten years, however, declined to 2.9% in October, compared with 3.0% a month earlier. The official gauge of consumer prices dip to 1.2% in September, a five-year low.
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