Mortgage approvals low but rising

Mortgage approvals recovered from a five-month low in March amid further signs that housing market activity is lifting, Bank of England figures have shown.

Some 53,504 mortgages worth £8bn were approved last month, edging back up from 51,947 approvals in February, the lowest figure seen since September 2012.

Experts said Government efforts to boost lending could push the figure higher in coming months, but they cautioned that approvals are still way below normal levels and on their own they are unlikely to give much “noticeable” support to economic recovery.

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The figures come after property analyst Hometrack reported yesterday that market conditions in London have improved to levels not seen since 2007. There are also signs that the market is picking up in other economic hotspots such as Cambridge, with homes now taking a week less to sell on average than at the start of the year.

Mortgage availability has increased strongly and lenders have been offering some of their lowest ever rates since the Government launched its Funding for Lending scheme.