New mortgage approvals rise

03/06/2009

There has been a noticeable increase in new mortgage approvals in recent months, it has been revealed, which could offer some good news for the construction industry.

Construction jobs have been hit hard by the global recession, with values of properties falling and the number of people looking to purchase new properties in freefall.

However, the latest figures from the Bank of England have suggested banks are willing to lend more money to those looking to buy a new home, meaning the property market may be starting to see an upturn.

The monthly report from the bank shows that over 43,000 new mortgages were taken out in April compared to 40,000 in March.

An increase in mortgage approvals and a growth in sales would help improve the availability of construction jobs because it could help encourage builders to start new developments once more.

Sue Anderson, head of member and external relations at the Council of Mortgage Lenders (CML), said the figures were "good news" for the market.

"We think next month it is very likely that approvals will show their first year-on-year rise on a monthly basis since early 2007," she added.

The CML is the trade association for the mortgage lending industry and their members account for around 98 per cent of UK residential mortgage lending.

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