Mortgage approvals levels in the month of September attained the highest recorded level in a year.
Research from the Bank of England (BOE) indicates that loans for home approvals rose from 106,000 in August to 107,000 in September.
This figure is the highest since June 2004, supporting arguments that the housing market is definitely stabilising after a slowdown since mid-2004.
Howard Archer, economist at Global Insight, told Reuters: “Evidence continues to grow that housing market activity is strengthening. Even so, we remain sceptical that housing prices are set to sustain significant rises any time soon.”
Mortgage lending growth showed an improvement on August figures of £7.592 billion, coming in at £7.703 billion, just under the forecast figure of £7.8 billion.
Anticipation by experts of a further base rate cut by the BOE is becoming less certain amid concerns of high inflation.
© Adfero Ltd