CML: Mortgage approvals to increase in May

Date:Tuesday 2nd June 2009
Author: Max Freedman

It is "almost inevitable" that the number of mortgage approvals recorded in the month of May could surpass those from a year ago for the first time since 2007, the Council of Mortgage Lenders (CML) said in a statement today (June 2nd).

Commenting on new lending data published by the Bank of England, the CML noted that the number of house purchase approvals continues to "edge up", although activity remains at low levels compared to previous periods - including the early 1990s.

"Limited lending capacity and the impact of further job losses are likely to act as a ceiling for how far the improvement can continue, although there could be further modest rises in the coming months," the group stated.

And while seasonally-adjusted figures for April indicated 43,000 mortgage approvals during the month - compared to 40,000 in March - they represent a year-on-year fall of 22 per cent.

Also commenting on the Bank of England figures, the Royal Institution of Chartered Surveyors noted that according to its monthly housing market survey, an increase in new buyer enquiries could boost the volume of mortgage approvals to between 60,000 and 65,000 by the end of the year.