Mortgage approvals rise above six-month average

Mortgage approvals for house purchase and remortgaging in June have risen above the previous six-month average.

The latest figures from the Bank of England reveal the number of approvals for house purchase rose to 47,584 in June, compared with 44,169 in May and against a previous six-month average of 38,608.

The number of remortgage approvals climbed from 31,874 in May to 35,011 in June, and up from the previous six month average of 33,058.

However, total net lending rose by just £400m, lower than the £500m increase in May and well below the £1.2bn average recorded over the last six months. However, net lending secured on dwellings remained unchanged from May's figures of £300m.

CML economist Paul Samter comments: "Activity is certainly more positive than at the start of the year. This is consistent with the improvement in housing market sentiment, but the outlook is still sluggish, as capacity constraints on the lending industry and continuing deterioration in the labour market will act as a brake on the pick up."