UK mortgage lending 'still weak'

Date:Tuesday 4th May 2010
Author: Max Freedman

The number of mortgages approved in Britain in March rose slightly from the previous month, according to new statistics.

Figures released by the Bank of England have revealed that 48,901 loans were agreed last month, up from 46,882 in February and a year-on-year increase of 17 per cent. However, the first quarter saw an overall decline of 30,000 on the previous three months, with a total of 144,000 mortgage loans taken out.

Building Societies Association director general Adrian Coles said: "Lending activity appears to have gained some momentum following a sluggish start to the year and the relatively strong approval figures bode well for coming months."

However, he added that uncertainty surrounding the outcome of the imminent general election and persistent concerns over growing unemployment could hamper the property sector's performance in the coming months.

According to the Centre for Economics and Business Research, British house prices could increase by as much as 5.3 per cent this year.