September mortgage approvals well behind 2015 levels but edge up on August numbers
UK mortgage approvals flopped nearly 10 per cent in September compared to last year, the Bank of England reported this morning.
Although the figures did bounce back from the 19-month low recorded in August, the 62,932 approvals were well behind the 69,619 recorded in September 2015.
Read more: Time to remortgage? Fixed rates are low, but watch out for additional fees
However, the figures did beat the expectations of some analysts, as a poll of analysts by Reuters indicated that 60,150 approvals were expected.
"The September Bank of England mortgage approvals data tie in with other indications that housing market activity has edged off its recent lows, helped by the current resilience of the economy," said Howard Archer, chief economist at IHS Markit.
Mortgage approvals, which are a sign of house market sales activity, have been trundling along at low levels since the Brexit vote. And Archer said that today's news was a sign that "house prices could well edge a little higher in the near term".
Read more: Mortgage approvals fell 15 per cent in September
Nevertheless, any increases are likely to be short-lived according to Archer.
"We suspect that house prices will come under increasing pressure as 2017 progresses and may dip modestly over the year, possibly by around 3 per cent. We believe housing market activity and prices will be increasingly pressurised in 2017 by heightened uncertainty and markedly deteriorating fundamentals for households," he said.