Mortgage Market Gaining Strength

A strong rise in mortgage approvals during February shows that the UK property market is reviving in the end of the first quarter. House purchase approvals rose to 58,000 new loans in February, showing an increase of 28% over the past month and 22% more than this time last year. The British Bankers Association points to a revival in the mortgage market from the new numbers available. In January, loan approvals numbered a little over 45,000 and this time last year, approvals were a little more than 47,000.

The first half of last year showed a comparative weakness in the mortgage market; current indicators of activity, including the increase in approvals, make the market much stronger than it was 12 months ago when the market was still subdued. When the mortgage peaked in 2004, however, a record number of mortgages were issued, surpassing current numbers without a doubt. Home prices rose by 0.40% in March, thanks to rising prices specifically in London.