Upbeat mortgage approvals data underscores strength in UK housing market

UK mortgage approvals fell less than expected in February, rising by 73.9k in February beating market expectations at 73.5k and compared to 74.1k previously (revised from 74.6k) and the 62k registered last year. Data suggested that demand for housing remained resilient before tax changes take effect in April.

Mortgage lending has at the same time slowed to £3.6bn after the £3.7bn in January (revised from £3.7bn, market: £3.6bn), bringing total net lending to £4.9bn (prev: £5.3bn). The data is good news not just for prospective homebuyers but also those looking to remortgage according to Brian Murphy, head of lending at the Mortgage Advice Bureau.

With the Bank of England unlikely to raise the UK Bank Rate anytime soon following a unanimous decision earlier this month by the Monetary Policy Committee (MPC) to keep it at 0.5pc for an 84th consecutive month, low mortgage rates are expected to continue.