RICS: Bank of England December mortgage approvals data

Data released from the Bank of England today show that mortgage approvals edged up in December but they still remain close to historic lows and are running at barely two-fifths of last years levels.

Commenting on the Bank of England's mortgage approvals data released today, RICS chief economist Simon Rubinsohn said: "The pick-up in activity reflects in part the increased interest from buyers who are being attracted to the market by both the fall in house prices and drop in mortgage rates. Interestingly, the increased supply of mortgage finance in December came exclusively from banks while both building societies and other lenders remained on the sidelines.

"The RICS New Buyer Enquiries series suggests that mortgage approvals could rise a little further over the coming months but more mortgage finance is urgently needed to help meet this demand. The likely introduction of 'mortgage guarantees' in April should go some way to help address this issue."