Hot housing market creating risk to UK economy

An unsustainable bubble may be building from the pace of mortgage approvals, as affordability becomes stretched and lenders ease loan requirements

THE UK property market is heating up rapidly, and a mix of surging demand and double-digit price growth is causing concern that an unsustainable bubble is building.

The pace of mortgage approvals is running more than a third higher than its pre-pandemic levels, and housing could be heading for its busiest year since before the financial crisis as buyers rush to take advantage of a tax cut. But with affordability stretched and lenders easing mortgage requirements, the signs are starting to worry some Bank of England (BoE) policy makers.