29 July 2024
If you are covering the latest Bank of England money and credit statistics, please see the following comment from Nick Winter, financial planner at Quilter:
“The latest Bank of England money and credit statistics released this morning reveals families are beginning to squirrel more money away as the pressures of the cost of living crisis begin to ease. Households’ holdings of money saw an increase of £8.4 billion in June, up from a £6.5 billion increase in May. Of this, an additional £3.4 billion was deposited into ISAs. The uptick in household savings is a step in the right direction, and given the squeeze on the various tax allowances and thresholds, it is unsurprising more people are turning to ISAs for their tax efficiency.
“Consumer credit borrowing also fell slightly in June, down to £1.2 billion from £1.5 billion in May. Borrowing through credit cards fell slightly to £0.5 billion in June down from £0.6 billion in May. Given the hardships many have faced in recent years, it is encouraging to see the tides appear to be turning and more people are now able to put more money into savings and are becoming less reliant on borrowing.
“Meanwhile, the housing market appears to gradually be gaining momentum. Individuals borrowed, on net, £2.7 billion in mortgage debt in June, more than double the £1.3 billion seen in May. The annual growth rate for net mortgage lending also saw a further rise to 0.5% in June, up from 0.3% in May.
“Buyers have been taking a very cautious approach amidst an unpredictable economic outlook and fluctuating mortgage rates, but it seems the prospect of a new government and hope for increased stability has given buyers some confidence. Nonetheless, we are unlikely to see a sudden surge in activity given interest rates remain high, and net mortgage approvals for house purchases, which signal future borrowing trends, remained broadly flat at 60,000 in June.”
