The number of UK home loans approved in April fell at its slowest annual rate in almost two years, the British Bankers' Association (BBA) said today, in a sign the housing market may be stabilising after a very sharp slide.
The BBA said the number of mortgages approved for house purchase rose to a seasonally adjusted 27,685 in April from 26,671 in March.
That was down 15.5 per cent on the year, the smallest annual decline since August 2007, when the credit crunch hit and the housing market started to come off the boil.
The BBA said its figures suggested the mortgage market may be stabilising.
However, analysts cautioned that lending conditions remained tight, despite record low interest rates and the Bank of England's efforts to pump money into the economy, and that the housing market was still a long way from recovery.
The BBA figures showed net mortgage lending rose by £2.7 billion compared with a downwardly revised £3.4 billion rise in March -- the smallest increase in 8 years. The average value of the loan stood at £129,100.
Recent housing market surveys have suggested that interest from prospective homebuyers may be improving as Britons slowly regain confidence in the economic outlook. House prices also seem to be falling at a slower rate than last year.
However, banks remain cautious about lending while the economy remains deep in recession and unemployment is climbing, and this could hamper a pick-up in housing market activity.
The BBA said the number of re-mortgaging approvals fell to 25,418 last month, down 63 per cent on the year and its lowest since December 1999. Approvals for housing equity withdrawal were down nearly 39 per cent on the year to 19,409.
Reuters