UK mortgage approvals at highest level since 2007

UK mortgage approvals rose more than forecast in January to the highest level in more than six years as the property market continued to strengthen. Lenders granted 76,947 loans for house purchase, the most since November 2007, compared with a revised 72,798 in December, the Bank of England said today.

UK house-price growth also accelerated in February to the fastest in seven years as London led a recovery that's spreading across the country, Hometrack said today. Rising values prompted the BOE to end support for home loans under its Funding for Lending Scheme this year.

Chief economist Spencer Dale said in an interview last week that the revival in the property market is good for the economy, and officials are alert to the risk of the market overheating. "While the strength of house prices is not yet a serious concern outside of London, it is something that needs to be closely monitored," Howard Archer, an economist at IHS Global Insight in London, said before the data were released. "There is rising buyer interest and strengthening market activity across regions."

Bloomberg