August approvals reached 69,220, a 9.3% increase on 63,340 in August last year and the highest number since 70,239 recorded in February 2014.
Approvals were also strong the month before, as they rose by 0.7% from the 68,764 approvals recorded in July.
Richard Sexton, a director of e.surv chartered surveyors, said: “While the global economy has been walking on eggshells as China’s economy stalls, the UK housing market has been striding forward on much firmer ground.
“Weak inflation and recovering wages mean that more British workers are able to meet the stringent affordability requirements demanded by MMR and obtain the mortgage they want. This latest resurgence of demand is pushing up prices.
“What’s more, banks are supporting those borrowers that need finance, and many record-low rates remain. It‘s a good time for many potential new buyers to get a mortgage and think about taking a first step on the ladder.
“Concerns over an interest-rate rise may have helped push some borrowers into acting quickly. However, this is now the third consecutive month of growth, and home lending has been strong since May, now that the uncertainty that surrounded the election has evaporated. Healthier mortgage lending reflects a stronger UK economy and an upturn in fortunes for British buyers.”
