U.K. Mortgage Approvals Climbed in July Amid Stamp Duty Cut
- Consumer credit increases after months of repayments
- Pickup may not last if unemployment starts rising quickly
U.K. mortgage approvals rose for a second month in July after Chancellor of the Exchequer Rishi Sunak announced a tax holiday to kickstart the coronavirus-battered housing market.
Lenders signed 66,281 home-loan agreements, more than forecast and up from 39,902 in June, the Bank of England said Tuesday. Demand for unsecured credit was also stronger than expected.
July saw a stampede to snap up homes after the threshold for paying stamp duty, a home-buying tax, was temporarily raised as part of a package of measures to support jobs and the economy. The initiative, which runs until March 31, saves someone purchasing a property up to 15,000 pounds ($20,000) and around nine in 10 buyers are forecast to pay no tax at all.
The move built on a revival following the reopening of the English housing market on May 13, with Wales, Scotland and Northern Ireland following suit in June.