United Kingdom Stock Market rose 61 points. Leading the gains are Rentokil Initial (6.98%), Informa (6.12%) and Anglo American (5.60%). Top losers were BT Group PLC (-6.55%), Smith & Nephew PLC (-6.33%) and SSE (-3.81%).
Net mortgage borrowing in the United Kingdom hit an all-time high of GBP 17.9 billion in June 2021, easily beating market expectations of GBP 7.9 billion, driven by borrowing ahead of the tapering off of the lower stamp duty rates from July. The previous record, in March 2021, was GBP 11.5 billion, and borrowing has averaged GBP 5.4 billion in the 12 months to May 2021. Data also suggested there had been a shortening of time between a mortgage being approved and the lending itself; there was no large rise in the number of mortgage approvals in recent months, unlike ahead of the strong net borrowing in March. Gross lending increased to GBP 43.8 billion, with gross repayments also increasing to GBP 27.7 billion.
Consumer credit in the United Kingdom increased by GBP 0.31 billion in June of 2021, following an upwardly revised GBP 0.43 billion rise in the previous month and below market expectations of a GBP 0.6 billion advance. GBP 0.31 billion remains below the GBP 1.2 billion average monthly borrowing in the 24 months to February 2020. The annual growth rate remained weak, but rose slightly to -2.2% in June from -2.9% in May. The increase in net consumer credit reflected an additional GBP 0.2 billion of ‘other’ forms of consumer credit, such as car dealership finance and personal loans. Credit card lending showed net borrowing of GBP 0.1 billion. The annual growth rates of both components have risen from series lows in February 2021, but remained weak at -0.1% and -7.4%, respectively.
The number of mortgage approvals for house purchase in the UK decreased to 81.3 thousand in June 2021, from a revised 86.9 thousand in the previous month and below market expectations of 86.1 thousand. The number of approvals, which is an indicator for future lending, fell to the lowest since July 2020, but remained above pre-February 2020 levels. Approvals for remortgage, which only capture remortgaging with a different lender, rose slightly to 35.4 thousand in June, from 34.8 thousand in May, remaining low compared to the months running up to February 2020.
UK factories produced 69,097 cars in June 2021, up from 56,594 a year ago, but still representing the worst June total since 1953 as the global chip shortage, caused by the pandemic, and other factors continued to take a toll on output. Exports continued to sustain British car manufacturing with more than eight in ten (83.4 percent) models made here so far this year shipped overseas, with more than half of these (51.7 percent) heading into the EU. Considering the first half of the year, 498,923 units rolled off production lines, down 38.4 percent on the five-year average, due to the pandemic, new trading rules with Europe and supply issues.