Commenting on the BBA mortgage approvals data, RICS chief economist Simon Rubinsohn said: "The February mortgage approvals data published by the British Bankers Association show that the increase in buyer enquiries, as highlighted by the RICS Housing Market Survey, is now feeding through into actual transactions. Suggestions that the heightened level of interest was just window shopping is clearly misplaced. BBA figures demonstrate that mortgage approvals have risen for three consecutive months.
“Even so, the actual level of activity still remains not that far away from historic lows and it would be premature to conclude that some semblance of order has returned to the housing market. Mortgage finance remains difficult to obtain and typical loan to value ratios are making it challenging for first-time buyers to access the market. Even the commitment given by RBS, LLoyds TSB and Northern Rock to raise lending this year will only boost the available mortgage finance by around 10% compared with 2008. More needs to be done to ensure that the market is able to function effectively."
