The number of mortgage approvals in the UK jumped to a two-year high in December 2011, said the Bank of England (BoE), but experts stressed that lending remains historically low.
According to a report, the number of home loans given out hit 52,939 in December last year, from 52,628 in the previous month, while mortgage approvals have remained at about 52,000 for four months now.
Dr Howard Archer, Chief UK Economist at IHS, said December mortgage approvals remain below the average monthly level of approximately 88,000 recorded since 1993.
“A level of 70,000-80,000 has in the past been considered consistent with stable house prices,” he said.
He noted that activity in the UK housing market will likely struggle this year, citing Hometrack’s survey for January, which showed the number of new home buyers registering with agents declining by 10.5 percent while agreed new sales were down 14.3 percent.
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