Home loan approvals in the UK rose unexpectedly in November to its highest level since July, according to new figures released by the Bank of England.
About 48,019 home loans were approved in November, a slight increase from previous months, despite analysts predicting a decline.
However, despite the increase, the figure for November was far less than the same period in 2009, as well as the 90,000 average monthly approvals.
“This is slightly better than expected but these are very low levels suggesting the mortgage market has a long way to go before we can consider it healthy,” said Amit Kara of UBS bank.
Home prices in the UK remained flat in 2010 compared to the previous year, although slight declines are expected this year.
UK Housing Minister Grant Shapps said that home ownership should no longer be considered a long-term financial investment.