Housing Market Shows Signs Of Recovery
Signs of life were seen in the UK housing market in the new year with a rise in the number of mortgages being approved.
Activity remains weak overall, with potential buyers still nervous about high interest rates.
But the latest Bank of England data shows approvals for house purchases rose to 55,200 in January from 51,500 in December. This was the highest level since October 2022. Borrowing on credit cards also picked up last month.
People took on £1.9bn more in credit on cards, car finance and other loans in January than they repaid.
Mortgage lenders have been shifting the interest rates charged on home loans at a rapid rate since the start of the year. This started with some significant cuts to the cost of new fixed-rate deals.
However, in recent weeks, these rates have started to creep back up.
Many potential buyers have put plans on hold in the hope that the Bank of England will cut the benchmark interest rate later in the year, which would influence lenders' decisions.