U.K. mortgage approvals rise less-than-expected in Dec

Brexit vote and a tax hike on investment properties that took effect in April has inflicted a toll on the London housing market. Bank of England data released today showed that the number of mortgages for house purchase approved by lenders increased to 67,898 in December.

The rise was below the median forecast of 69,000 in the Reuters poll and compared to 67460 in the preceding month. Cheap borrowing costs underpinned demand for home loans which still remained at the biggest number since March 2016.

Last week, data released by the British Bankers' Association, showed mortgage approvals hit a nine-month high in December. The BoE forecast in November that mortgage approvals would slow to a monthly average of 65,000 over the next six months, and major lenders expect weaker house price growth.

Net mortgage lending, which lags approvals, rose by 3.8 billion pounds in December, the BoE said, stronger than a forecast of 3.3 billion pounds in the Reuters poll.