Recent figures have shown that the number of mortgages approved in February was the highest in five months, although they were still down considerably on February last year.
Attributed to very low rates currently being on offer, mortgage lending increased again, according to the British Bankers’ Association (BBA), indicating that the UK’s housing market is gradually picking back up.
There were 37,305 mortgages approved, an increase of 2 per cent compared to January. However, this number is 20 per cent lower than February 2014, which was a 76-month high with 49,209 mortgages approved.
“The increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We’re seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available,” said the chief economist at BBA, Richard Woolhouse.
He added: “Demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis. Consumers are feeling increasingly confident about buying big ticket items, such as cars or home improvements, as the recovery really begins to take hold.”
House prices are expected to rise during the year, possibly by as much as 5 per cent according to some experts. However, this could depend on the general election, with some potential investors expected to wait until afterwards before making a purchase. Each party has already stated their plans for housing, with first-time buyers paying particularly close attention to these plans.
