A total of 71,030 mortgages were approved in August, the highest number of loans for 19 months and up from 69,010 in July.
These figures from the Bank of England beat analysts’ expectations and represents the largest rise since 2008, presenting further evidence of the housing market’s improvements.
The number of loans approved in August is also a staggering 20 per cent higher than as recently as last November.
One of the reasons for the record high mortgage approvals could be the recent mortgage price war, with lenders competing strongly as they offer record low interest rates.
This news comes after house prices in England and Wales rose 0.5 per cent in August, according to the Land Registry, reaching an average price of £184,682.
Howard Archer, of IHS Global Insight, revealed he expects the year to end with house prices up 7 per cent, with a further rise of 6 per cent by the end of 2016. He said: “Higher interest rates are unlikely to have a major dampening impact on housing activity for some time to come, as the Bank of England is stressing that interest rates will only rise gradually and to a limited extent.”
The number of mortgages approved has risen in all but two months this year, contrasting strongly to 2014 where approvals fell for most of the year.
