February Mortgage Approvals in U.K. Increase to 46,967, More Than Forecast - Bloomberg

February Mortgage Approvals in U.K. Increase to 46,967, More Than Forecast - Bloomberg

U.K. mortgage approvals rose to 46,967 in February, the highest level since November and more than economists forecast, suggesting the property market is stabilizing.

The figure compares with an upwardly revised 46,152 in January, the Bank of England said today in London. Economists forecast 46,000, based on the median forecast of 15 economists in Bloomberg News survey.

Recent house-price data have been mixed as a lack of supply props up home values, while banks’ rationing of credit and record low consumer confidence curb demand. The property market may come under pressure as government spending cuts begin in earnest and accelerating inflation stokes expectations the Bank of England will raise interest rates by mid-year.

“Following a weak end to the year, mortgage approvals appear to have picked up a little bit recently,” Philip Shaw, an economist at Investec Securities Ltd. in London, said before the release. “Approval levels are still far from a level indicative of a housing market recovery and well off the pre- crisis 2006 high of 128,000.”

Separate figures showed the economy shrank 0.5 percent in the fourth quarter, less than previously estimated, as services and factory output was revised higher. Excluding the impact of the coldest December in a century, growth was “broadly flat,” the Office for National Statistics said today in London.