Mortgage approvals turn higher
The number of UK mortgage approvals improved last month for the first time since January, although official figures showed lending slowing down markedly.
Approvals were up to 114,000 in May versus an upwardly revised 109,000 a month earlier, said the Bank of England, beating the 105,000 analysts had predicted.
But mortgage lending was at its lowest since February last year, down to £8.70bn from a downwardly revised £8.76bn in April and lower than the £9.20bn forecast by analysts.
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Yesterday, a report from the Nationwide showed house prices rose more than expected in June, sending the annual rate 11.1%, its highest in over two years.
The monthly increase of 1.1% was far more than the anticipated 0.4% advance and more than double the 0.5% rise announced in May.
"The resilience of the housing market will be another component to add to the rate rise camp's argument," said the building society's chief economist Fionnuala Earley.
