Mortgage approvals rise
30/11/2005
Mortgage approvals were at their highest level for nearly 18 months in October, new figures have revealed.
The Bank of England (BoE) has announced that Britons took out 113,000 mortgages worth £7.6 billion last month, suggesting that the housing market is stabilising.
This represents the largest number of mortgages approved since June 2004, when the market was at its peak.
"The approvals data will encourage speculation that house price inflation could begin to pick-up in the new year but we would be cautious about the extent of upside scope for house prices given their current elevated levels," commented Ross Walker, economist at the Royal Bank of Scotland.
Many analysts have claimed that sustained house price growth is unlikely in the near future, as affordability ratios are low and will be stretched even further if house prices start to rise.
Consumer credit also grew very slightly last month, according to the BoE, up from £1.2 billion to £1.3 billion.
Overall lending also witnessed a narrow increase in October.
The Bank of England (BoE) has announced that Britons took out 113,000 mortgages worth £7.6 billion last month, suggesting that the housing market is stabilising.
This represents the largest number of mortgages approved since June 2004, when the market was at its peak.
"The approvals data will encourage speculation that house price inflation could begin to pick-up in the new year but we would be cautious about the extent of upside scope for house prices given their current elevated levels," commented Ross Walker, economist at the Royal Bank of Scotland.
Many analysts have claimed that sustained house price growth is unlikely in the near future, as affordability ratios are low and will be stretched even further if house prices start to rise.
Consumer credit also grew very slightly last month, according to the BoE, up from £1.2 billion to £1.3 billion.
Overall lending also witnessed a narrow increase in October.
