Taxes and Brexit stall UK mortgage lending

British mortgage lending grew at the weakest pace since 2012 as a new tax on landlords took effect, and uncertainty about Britain’s future in Europe dampened other borrowing, too.

The Bank of England said net mortgage lending rose just £281m (€362m) in April, a fraction of the £3.8bn increase forecast in a Reuters poll of economists and down sharply from a £7.411bn increase in March.

This was the smallest rise since August 2012, while approvals for new mortgages in April — a bellwether for future property market activity — fell to 66,250 from March’s 70,305, their biggest drop in two years.