Scottish Property News

Mortgage approvals continue to rise

Mortgage approvals for house purchase in April were nevertheless down 22per cent on the same month last year and remained weak by historical standards.

The seasonally-adjusted Bank of England data showed 43,201 mortgages were approved in April, up from 40,038 in March and comfortably ahead of the City's 41,000 forecast.

April's figure was also well ahead of the average of 33,845 for the previous six months and a November figure of 27,501, which had been the lowest since comparable records began in the 1990s. However, it was well adrift of the 55,280 approved in April last year.

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "The further rise in mortgage approvals from last November's record lows reported by the Bank of England ties in with widespread evidence that housing market activity is trending up modestly as it is supported by sharply-reduced mortgage interest rates and the substantial fall in house prices from their 2007 peak levels."

However, noting mortgage approvals had averaged 98,000 per month between 1993 and 2007, Archer added: "Despite the recent limited pick-up, mortgage activity is still down at a level that is consistent with falling house prices."

Actual mortgage lending, a slightly less-timely indicator than the more forward-looking approvals, rose by only a net GBP973m in April. Although marking an acceleration from a GBP640m increase in March, the April advance was weaker than the GBP1.1bn average rise over the previous six months.