1st April 2009Figures from the Bank of England showed that the number of new mortgages being approved in February rose by a fifth on the month, suggesting buyers are returning to the housing market. Although it remains too early to assume prices will soon bottom out, the increase indicates that the worst of the downturn may now be over.
The Bank said that the number of mortgages approved for house purchase jumped by 19pc to 37,937 during the month – far more than analysts had predicted. These figures suggest that housing market activity may finally have turned a corner.
Separate Bank figures showed that monetary conditions were starting to improve even before the Bank of England began pumping money directly into the economy.
M4 money supply, excluding financial corporations, grew by 3pc in the year to February, up from 2.9pc in January, with much of the increase coming in the latest three months.
Eric Walker, Managing Director of Bushells, reports that March produced the best results for nearly a year. Both Sales and Lettings Departments exceeded their targets.