The current market could present a good opportunity for first-time buyers to get on to the property ladder, as mortgage approvals pick up but housing prices remain low.
The recent figures from the Bank of England show a £1.3 billion increase in total net lending to individuals in February - higher than the rise seen the previous month.
Such results could indicate that housing market activity has reached a floor and is starting to recover, comments Vicky Redwood, UK economist at Capital Economics.
However, she points out that it could be a long time yet before activity is strong enough to lead to higher house prices.
"The lower rates might be providing a bit of a stimulus, but probably the bigger factor is the fact that house prices have fallen significantly and have made buying a house more attractive," Ms Redwood adds.
According to figures from the British Bankers' Association, some 28,179 mortgages were approved in February - up 16.1 per cent on January.
See Also: Property News (6705)
Date Published: 03 April 2009
Related News
