The number of UK home loan approvals for home purchases increased 15.5 percent on-year in April to the highest level for 2010, according to industry data.
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The data from the British Bankers’ Association showed that the number of approved home loans for house purchases jumped to 35,729 in April from 35,044 in the previous month and 30,649 over the same period last year.
However, this number remained at a lower level compared to more than 40,000 home loan approvals recorded in the second half of last year.
The figures were released after mortgage lender Nationwide announced that it expected the residential market to be stable over the next 6-12 months, as increase in property supply covers the price hikes.
“The ongoing muted BBA mortgage approvals data reinforce our suspicion that house prices will struggle to make significant gains over the coming months,” said Howard Archer, an economist from IHS Global Insight.
Net mortgage lending was restrained as many households continue to pay their debt. Net mortgage lending increased 1.825 billion pounds or S$3.7 billion last month, the lowest level since February 2001, and less than half the levels recorded in most of 2008.
“Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings,” said David Dooks, statistics director of the BBA.