UK consumer borrowing surged in November, marking the largest increase in two years, according to Bank of England data released Monday. Households added a net £2.08 billion ($2.79 billion) in borrowing, surpassing forecasts and October’s £1.713 billion rise. The annual growth rate of consumer credit reached 8.1%, the fastest since May 2024, signaling strong household demand ahead of Finance Minister Rachel Reeves’ budget.
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Economists suggest that recent speculation about tax increases had little effect on spending. Alex Kerr, a UK economist at Capital Economics, noted that the figures indicate limited room for further growth in consumer spending during 2026. Reeves had announced £26 billion in tax hikes in her November budget but postponed most of the measures, allowing households some leeway in managing finances.
While borrowing rose, mortgage approvals for house purchases fell slightly in November, from 65,010 in October to 64,530, according to the Bank of England. This was just above economists’ expectations of 64,400 approvals. The slowdown in mortgage approvals contrasts with the robust growth in consumer credit, reflecting continued caution in the housing market.
December house price data from Nationwide Building Society showed prices fell 0.4% for the month, leaving annual growth at just 0.6%—the weakest since April 2024. Analysts attribute the slowdown to strong price gains in December 2024 and the modest dip in December 2025. Nationwide Chief Economist Robert Gardner highlighted that mortgage approval levels remained similar to pre-pandemic figures, while easing affordability constraints and declining mortgage rates supported ongoing buyer demand.
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The mixed signals from borrowing, mortgage approvals, and house prices suggest that while consumers remain willing to spend, the housing market may face slower growth, creating a complex landscape for policymakers and financial planners in 2026.