UK home loan approvals at seven month high
Friday, 29 April 2005The number of British loan approvals for home purchase climbed to a seven month high in March while growth in consumer credit picked up a bit more than expected.
The Bank of England said approvals for house purchase - loans agreed but not yet made - rose to 91,000 last month from an upwardly-revised 86,000 in February. That was the highest total since August 2004.
The approvals figures, often seen as an indication of house prices six months out, may be viewed by some as a further sign that the British housing market is stabilising after a slowdown that began in earnest in the second half of last year.
The figures are not likely to alter expectations in financial markets that the Bank of England is likely to leave interest rates on hold at 4.75% at its May 9 meeting, but still might raise them later this year.
The Bank of England said consumer credit, meanwhile, rose £1.85 billion in March, more than the £1.7 billion rise expected by economists and above the £1.64 billion in February.
Mortgage lending growth was steady in March at £7 billion against a forecast of £7.1 billion and barely down from the month before. Growth in mortgage lending has been roughly stable at around that level for the past four months.
