News from Manor Lettings
Mortgage approvals jump to nine month high!
Mortgage approvals surged in February in what could be the early sign of a recovery in the housing market, figures released today from the Bank of England (BoE) showed.
In its latest publication, the BoE said the number of loans approved for house purchases jumped to 37,937 last month, up 19% from January's reading of 31,791 and the six-month average of 31,495.
The BoE's figures are a leading indicator of mortgage activity, and such a vast jump took the approval rate to its highest level since May last year.
The jump also leaves the approval rate sharply higher than November when it stood at just 27,330, representing a series low.
Simon Rubinsohn, the chief economist at the Royal Institution of Chartered Surveyors, said the figures were further evidence of a pick up in buyer interest in the housing market, and reflected the improvement in affordability of houses following the 20% drop in house prices seen in the UK.
However, Rubinsohn said with borrowers still struggling to raise deposits, activity would remain lower than previous highs. "While it is likely that the numbers of mortgages being approved will continue to edge upwards over the coming months, the level of activity will still remain low by historical standards."
Separately, Hometrack - the business information provider which publishes a monthly housing market survey based on responses from 5,900 estate agents and surveyors - said house prices were still falling, albeit by less than previously.
It found that in March prices fell by 0.6% to £156,100, but it said the fall was the lowest decline in 10 months. It added there had been a climb in the amount of sales agreed by 18.6%.
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