Bank of England survey findings add to growing optimism in the UK housing market
Despite a surge in defaults on home loans and credit cards due to elevated interest rates, lenders are anticipating a resurgence of homebuyers in the mortgage market, according to a recent Bank of England survey.
The findings of the central bank’s Credit Conditions Survey, published on Thursday, contribute to the growing optimism in the housing market, attributing the potential rebound to the recent decline in mortgage rates, which is enticing more buyers and aiding in stabilising property prices.
The survey, while indicating a decline in demand for secured lending in the final quarter of 2023, showed banks foresee a rebound in the first quarter of this year.
Default rates on mortgages and unsecured lending, including credit cards, increased in the fourth quarter of 2023, and are forecast to rise further in the first quarter of 2024.
The quarterly survey of bank and building society lenders, conducted between November 20 and December 8, 2023, asked respondents to report changes in the three months to November 2023, relative to the previous three months, as well as the expected changes in the three months to February 2024.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
