The Bank of England reported that mortgage approvals for house purchases rose for the sixth time in seven months in June, to stand at a 14-month high of 47,584.
This was up from 44,169 in May and a record low of 27,372 last November.
This is a year-on-year jump of 35.2 per cent from 35,196 in June 2008.
However, net mortgage lending only amounted to £343 million in June, thereby remaining mired near to May's record low of £331 million, said the BoE.
Significantly though, it is mortgage approvals that are seen as the key forward looking indicator for housing market activity.
Nevertheless, even in June, housing market activity was still very low by past norms norms and at a level typically consistent with falling house prices. Indeed, at 47,584 in June, mortgage approvals for home purchases were only just over half the average monthly level of 93,400 reported by the Bank of England since 1993.
Mortgage approvals above 70,000 are generally seen as consistent with rising house prices.
The BOE said: “We suspect that house prices will remain prone to significant relapses over the coming months despite their recent firmer tone. Much will clearly depend on whether or the economy can sustain its recent overall improvement or suffers a renewed dip in activity, how much further unemployment rises, how quickly and to what extent credit conditions ease, and how many properties come on to the market over the coming months.”
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