UK house lending predicted to fall by 8% in 2024

UK lending for house purchases is predicted to fall by 8% in 2024, according to a report by UK Finance. The trade association said higher interest rates and household costs will make it harder for people to access mortgage credit. UK Finance said it expects lending for house purchases in the UK will fall from £130bn in 2023 to £120bn next year. Mortgage arrears are forecast to rise from 105,600 cases by the end of 2023 with arrears of over 2.5% of the outstanding balance, to 128,800 by the end of 2024. There were an estimated 4,400 repossessions in 2023, which UK Finance said is "an incredibly low number by historic comparisons". James Tatch, head of analytics at UK Finance, said "2023 was a challenging year for both prospective and existing mortgage borrowers, facing affordability pressures from higher interest rates and the increased cost of living, as well as house prices still at elevated levels relative to income".

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