Rics comments on increase in mortgage approvals

Date:Tuesday 24th March 2009
Author: Max Freedman

Figures released by the British Bankers' Association (BBA) indicate that increases in buyer enquiries are now feeding through into transactions.

This is according to the Royal Institution of Chartered Surveyors (Rics), which made its comments in response to a statistical release by the BBA.

The association's figures suggest that there were 28,179 mortgages approved for house purchases last month.

This was a rise from the 24,278 approved in January.

Rics stated: "The February mortgage approvals data published by the BBA show that the increase in buyer enquiries, as highlighted by the Rics Housing Market Survey, is now feeding through into actual transactions."

However, it added that the level of activity still remains close to historic lows and it would therefore be premature to conclude that order has returned to the housing market.

According to Rics, mortgage finance remains "difficult to obtain" and typical loan-to-value ratios are making it hard for first-time buyers to enter the market.