UK mortgage approvals rising again

It has been revealed that mortgage approvals in the UK reached a two-year high in November amid signs that interest in the property market is starting to reappear again. The figure of just under 45,000 new approvals is over 150% higher than the same time last year, a time which turned out to be the bottom of the UK property market. So where do we go from here?

While some analysts are focusing on the fact that last month's figures are compared to the low of the market in recent times, there is no doubt interest has picked up. The actual amount of net mortgage lending (stripping out redemptions and repayments) also reached a high of £3.3 billion which is the highest on record since February. However, when you also take into account that winter time is a relatively quiet time for the UK property market, there is perhaps scope for real optimism for the future.

As we approach the end of 2009 all eyes are now turning to 2010, a time which many believe will be a pivotal year in the life of the UK property sector. If the recent increase in activity continues then we should easily sail through the troubled waters but if the financial storms start to brew again then we could have more trouble just around the corner.