The latest figure of 43,200 compares with a low point of just 27,500 in November, an increase of 57%. Moreover, the year on year change in the number of mortgages approved turned positive in May for the first time since the early part of 2007. A year ago only a little more than 39,000 mortgages were sanctioned.
The increase in total net lending to individuals in April (£1.3 billion) was higher than the March increase (£0.7 billion) but below the previous six-month average, according to the Bank. The twelve-month growth rate continued to fall, by 0.3% to 1.8%, but the three-month annualised growth rate increased by 0.1% to 1.0%.
Commenting on the data, CML economist Paul Samter observed: "It looks almost inevitable that May approvals will be higher than a year ago for the first time since early 2007. However, activity remains at extremely low levels on any historic comparison – and weaker than at any point in the early 1990s. Limited lending capacity and the impact of further job losses are likely to act as a ceiling for how far the improvement can continue, although there could be further modest rises in the coming months."
Simon Rubinsohn, RICS chief economist agreed: “The improving picture still needs to be kept in some context. Recent numbers have been far lower than would typically be expected even in the midst of a recession, and it is still unclear how rising unemployment levels will affect any recovery.
"Significantly, the positive trend in the RICS 'new buyer enquiries' series from the monthly Housing Market Survey suggests that activity should continue to improve over the next few months. We continue to expect the volume of mortgages approved to increase to the 60,000 to 65,000 area by the end of the year despite the continuing obstacles to first-time buyers accessing the market."
