UK consumer credit hits strongest growth in eight years

Net consumer credit extended to households in the United Kingdom rose by £1.807 billion in June, up from £1.723 billion in May, marking an annual growth rate of 9.1 % – the highest pace since July 2018, according to Bank of England data. The increase coincided with a 4.2 % rise in retail sales over the 12‑month period, driven by warm weather and the World Cup, which boosted spending on clothing, food, drinks and fan merchandise.

Mortgage lending also accelerated, with banks approving 58,200 new residential loans in June versus 56,565 in May and net mortgage credit expanding by £7.7 billion, the largest monthly rise since March 2025. Analysts expect the Bank of England to keep its benchmark interest rate unchanged at 3.75 % at the July meeting, while housing‑price indices showed modest gains, with Nationwide reporting a 2.2 % year‑on‑year increase and Lloyds a 0.6 % rise.