Bank of England figures just released show mortgage approvals remaining steady at 119,000 during February, suggesting continued strength in the housing market. This key economic indicator was once more slightly above market expectations although most analysts sill expect conditions to slow later in the year.
New home loans totalled £10.2 billion in February, a £0.7 billion increase on the previous month. An expected additional quarter point rise in interest rates might take the heat out of the market in the second half of the year. Enquiries from potential home buyers were said to be down slightly for the first time in two years, suggesting that January’s interest rate increase was beginning to have some effect.
However a survey from the Land Registry indicated that there was little sign of house inflation slowing as we entered the new financial year.
First published April 1 2007