Mortgage approvals edge ahead unexpectedly
Mortgage approvals for home purchases inched up during January, but remained near historic lows, data from the Bank of England revealed Friday.
The figure increased to 74,000 last month from December's all-time low of 72,000, revised down from 73,000 previously, but was better than the 70,000 analysts had expected.
The central bank's report also showed that growth in net mortgage lending was £7.4bn, its weakest rise since July 2005, versus a downwardly revised £7.9bn in December and worse than the £8.1bn forecast.
Meanwhile, net consumer credit growth was higher in January at £0.9bn versus £0.6bn the month before and ahead of expectations for a £0.8bn increase.
Policymakers are expected to keep interest rates at 5.25% for the time being following quarter point cuts in December and again earlier this month.
A report out this morning showed interest rate cuts appear to have had little impact on the UK housing market following a bigger than expected drop in February, the fourth consecutive monthly decline.
Figures from the Nationwide Building Society revealed that prices fell 0.5% from January, taking annual growth to 2.7%, the lowest since November 2005.
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Analysts had been expecting a flat read for the month and a slip to 3.6% year-on-year from last month's read of 4.2%.
Elsewhere, the Building Societies Association (BSA) announced mortgage approvals of £3.2bn for January, up slightly on December's £3.14bn, although well down on the £4bn reported a year earlier.
It also published figures that highlighted the continued benefits for building societies of the Northern Rock crisis.
Savers deposited £597m into their savings accounts during January, according to the BSA, the largest amount for that month since 1997.
"The January figures often show a net outflow as families pay off Christmas bills, with seven of the previous ten years seeing net withdrawals," said BSA director general Adrian Coles.
"The attractive savings products that societies are offering, coupled with the volatility of share prices, have attracted savers into societies, while the continuing economic uncertainty is encouraging further saving."
