Housing market seeing end of the tunnel as approvals for mortgage go up

Posted under General by Alan

Bank of England news brought some relief to the UK housing market as number of mortgage approvals went up compared to last month.

According to figures released by the Bank of England, mortgage approvals grew to 38,000, up 6000 in February compared with January and highest since May, 2008.

Many market observers believe that this increasing trend is probably an indication of revival of activity in housing market.

But Capital Economics’ Vicky Redwood opines that approvals are not consistent with falling house prices and need to double in number.

Market got another good news from property analysts, Hometrack, who reported that homes were selling quicker and buyers’ interest was also going up. It reported increase in number of registrations for the second consecutive month, up 9% in March, following 17% rise in February 2009.

The Hometrack’s survey involved 1,800 surveyors and agents across Wales and England and revealed that increase in aspiring buyers looking for good bargains is providing much-needed boost to the housing market.

The survey revealed 19% rise in sales agreed, although it considered this volume much below the normal levels. According to Richard Donnell, estate agents are becoming more optimistic about the market.

However, the Halifax house price index showed 2.3% fall in February and an annual drop of 17.7%.

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