BOE: Dec Mortgage Approvals Hit Lowest Since March 2009

–BOE: Q4 M4 Ex-intermediate OFCS +3.0% 1Q Ann; 2.3% 4Q Ann.
–UK Dec House Purchase Approvals 42,563 vs 47,287 Nov
–UK Dec Net Consumer Credit stg181mln vs -stg70mln Nov
–UK Dec Net Mortgage Lending -stg298mln vs stg483mln Nov
–Final Dec M4 -1.3% m/m; -1.5% y/y
–Dec M4 Lending -1.2% m/m; -3.3% y/y
–House Approvals Lowest Since March 2009

London (MNI) – UK net mortgage lending decreased in December and
mortgage approvals hit their lowest level since March 2009, according to
Bank of England data.

These data are seasonally adjusted and, in theory, should
compensate for the exceptionally cold pre-Christmas weather and would
therefore point to pronounced weakness in the UK housing market rather
than weather-related slippage.

Mortgage approvals fell to 42,563 in December from 47,287 in
November, hitting their lowest level since the 41,941 seen in March
2009.

Net mortgage lending shrunk by stg298mln, having risen by stg483mln
in November. This was the first net decrease since July and only the
second net fall in 2010.

Net consumer credit rose by stg181 million in December, having
shrunk by stg70 million in November.

Net consumer credit has tended to has shown small monthly increases
and decreases throughout 2010. It fell four times in 2010 and the
largest monthly rise seen back in May was of only stg400mln.

The broad money data showed growth in M4 excluding intermediate
other financial corporations, the BOE’s favoured measure as it excludes
economically irrelevant intra-financial service transactions, picking
up.

M4 ex-IOFCs was up 3.0% on a 1 quarter annualised basis and up 2.3%
on a 4 quarter annualised basis, up from 2.3% and 1.9% respectively in
Q3.

The BOE has switched to quarterly data for M4 ex-IOFCs with the
four quarter data measure reflecting quarterly flows over the previous
four quarter money stock levels.

–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]