Mortgage approvals hit 18 month high

In a further sign of a housing market recovery, loan approvals for house purchase increased to 56,215 from 52,970 in August.

Net lending secured on dwellings increased by £0.9 billion in September. Although this was weaker than the August rise of £1.3 billion, it was above the previous six-month average of £0.6 billion.

Overall, total net lending to individuals rose by £0.7 billion in September. The twelve-month growth rate remained at 0.8 per cent, and the three-month annualised growth rate increased 0.1 percentage points to 0.3 per cent.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said the figures provided further evidence that a little more money was now flowing through into the mortgage market.

He explained: ‘Today’s data, coupled with the latest numbers published by the Land Registry, suggest that transaction levels will continue to rise into the year end.’

However, Mr Rubinsohn warned that the ending of the stamp duty exemption on properties valued at £175,000 or less at the end of December could hit activity levels, particularly outside London and the south east.

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