UK mortgage approvals up almost a quarter

The volume of mortgage applications approved for a residential property purchase, including that of new home builds, leapt by 23% in June, compared to the preceding month, according to the Council of Mortgage Lenders (CML).

CML data shows that this is the fifth successive monthly rise in mortgage approvals and the highest level achieved for a year.

There was also a sharp increase in the number of first-time buyers, who are seen as a key to the revival of the housing market, getting on to the property ladder. Many first time buyers are looking to take advantage of the recent market slump and buy cheap property, or a shared ownership home, which is becoming ever more popular.

No fewer than 17,200 mortgages were issued to people buying their first abode, up 26% compared to May.

CML’s research acts as yet another sign that the UK property market is now on the road to recovery, owed partly to a shortage of residential properties for sale, further stressing the need for the construction of more new home developments.

Additional research by the Department of Communities and Local Government shows that the decline in property values slowed to 10.7% year-on-year in June, an improvement on the 12.7% annual fall recorded in May.

The medium price of a home in Britain stood at £191,423 in June. 

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