UK Mortgage Lending Jumps, Home Prices Inch Up

Mortgage lending in the U.K. rose to the highest level in almost a year and mortgage approvals picked up in the first month of the year, preceding a small gain in property prices the following month, according to The Daily Telegraph.

Mortgage lending in the U.K. rose to the highest level in almost a year and mortgage approvals picked up in the first month of the year, preceding a small gain in property prices the following month, according to The Daily Telegraph. On Tuesday, the Bank of England reported that mortgage approvals increased to 45,723 in January from 42,719 the month before, outpacing estimates for a reading of 43,000. However, consumer credit contracted by £333 million in January, which is the sharpest contraction in over a year, suggesting Britons remain cautious over the outlook for the economy.

Meanhwile, Nationwide reported that home prices added 0.3% in February to reach £161,183, which is only the second increase since May 2010. The report showed that unsold homes were not building up, with the data suggesting that the properties being put on the market was slowing down. Nationwide chief Robert Gardner said, “Given that the recovery hit a soft patch at the turn of the year and looks set to remain sluggish in the year ahead, the property market is likely to follow suit, with relatively low transaction levels and prices moving sideways or modestly lower through 2011.”

Click here to read the story on mortgage lending from The Daily Telegraph.

Click here for coverage of home prices from The Daily Telegraph.