Recently released figures have shown that the level of mortgage approvals for the month of February increased by more than many industry officials had been expecting.

The figures have been released by the Bank of England, and show that in Britain there was a higher than expected increase in mortgage approvals for house purchases for the month of February. The number of mortgage approvals for the month increased to 38,000, which was up from 32,000 mortgage approvals for the month of January.

It is thought that many people may be showing increased interest in the market as a result of lower house prices and rock bottom interest rates, and a number of industry groups such as estate agents have reported that buyer enquiries have increased over recent weeks.

However, not all of these enquiries are necessarily converting to sales, according to the Royal Institute of Chartered Surveyors, although these latest approval figures do indicate that there has been an increase in the number of enquiries that are converting to actual sales.

One industry official said: “February’s household borrowing figures suggest that housing market activity may finally have turned a corner. However, approvals have a long way to go before they get to levels that are no longer consistent with falling house prices – in fact they need broadly to double.”

However, RICS officials have said that there are still problems that must be overcome, stating: “Accessibility to the market still remains a problem, with many first-time buyers struggling to find the necessary deposit. While it is likely that the numbers of mortgages being approved will continue to edge upwards over the coming months, the level of activity will still remain low by historical standards.”

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