Bank of England Data Shows Surge in Mortgage Approvals to 18-Month High

In early 2024, the British housing market witnessed a remarkable recovery, as depicted by Bank of England data released on Tuesday. The data revealed that the number of mortgages approved by British lenders surged to an 18-month high in March.

During this period, lenders approved a total of 61,325 mortgages, marking a notable increase from 60,497 approvals in February. This figure also represented the highest total since September 2022. A Reuters poll of economists had initially anticipated approvals of around 61,500 mortgages, indicating the accuracy of the data.

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This surge in mortgage approvals aligned with various indicators of the housing market, all pointing towards an upswing in early 2024. This positive trend was a welcome change after a slowdown in activity during the previous year, attributed to factors such as high inflation and rising interest rates.

Additionally, the data revealed that net consumer credit lending experienced a significant rise in March. The increase amounted to 1.577 billion pounds ($1.98 billion), surpassing the February increase of 1.429 billion pounds. This figure slightly exceeded the 1.5 billion pound consensus forecasted in the Reuters poll.

Overall, the surge in mortgage approvals and consumer credit lending signaled a promising start to the year for the British housing market, indicating a renewed sense of confidence and activity among buyers and lenders alike.