Figures released by the Bank of England show that the amount of money loaned for house purchase totaled £8.7 billion – £1 billion higher than in October and £1.2 billion higher than the previous six-month average.
Mortgage approvals are above their average for the last decade, strengthening the argument that the housing market in 2006 will see the first annual rise in activity since 2002 after three consecutive years of decline, according to the Royal Institution of Chartered Surveyors (RICS).
According to RICS the number of would-be buyers making enquiries rose for the sixth consecutive month in November and robust employment conditions and rising earnings have helped to support housing demand despite a cooling in the wider economic climate.
RICS says: With interest rates likely to fall further in the next few months, we expect current firm market conditions to be maintained. As a result, mortgage approvals are likely to hit 1.33 million in 2006 compared to an expected total of 1.2 million for 2005, but still below the 2002 level of 1.42 million.
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