The UK housing market showed further signs of positive growth with the latest set of economic data which was released. For the first time in the last nine months, the number of approved home loans increased year on year. The April housing market data released by the Bank of England indicated an almost 9% increase has taken place, as more than 114,000 loans were approved during the month. This is growth from 105,394 loans which were approved a year prior.

The UK housing market is starting to heat up well beyond the level found before the days of the general election. With increased temperatures, the normal buying season is kicking in for thousands of would-be home owners, and that is evident in the housing data just released.

The number of house loan mortgages increased, but not far behind are the number of remortgages approved. Remortgages increased year on year as well during the month of April. In fact, this was the second consecutive month in which remortgage approvals increased year on year.

Peter Williams of the Intermediary Mortgage Lenders Association commented on the latest economic data surfacing regarding the UK housing market, saying: “Lenders have been forced to batten down the hatches over the past year to adapt to new regulations. With the Mortgage Credit Directive on the horizon, we are still caught in the eye of the regulatory storm, so it is reassuring to see that more people are being approved for loans than at any point since the Mortgage Market Review rules took effect. In particular, the rush of remortgaging proves that existing borrowers are still able to switch loan under the new affordability regime.”

Williams added: “Lenders are working hard behind the scenes to prepare the ground for the MCD and ensure the transition is as smooth as can be hoped for in practice, so there is every prospect for modest but sustained growth in the second half of this year.”