The new lending rules for those looking to purchase property in the UK created a dip in the amount of activity after the market started out the year on fire.  This dip was caused through the lending ability for those looking to buy to by stifled a bit and the market was affected.  More questions were being asked of the borrowers and that made it more difficult to obtain the necessary funds to purchase a house.

Since the dip took place however, a new surge of activity has transpired creating a new burst of mortgage approvals and a sense the housing market is seeing calmer waters and a steadier future at least in the short term.

July saw more than 66,000 approvals for mortgages toward the purchase of houses worth more than £10.5bn.  This represents an increase of more than 7% compared with the year prior.

According to the Bank of England, the July activity is more than 7% higher than the dip which was experienced in the month of May.

Matthew Pointon, a property economist at Capital Economics, believes the resurgence represents the ability of the market to show resilience and that the near future should see quick bounce back in the amount of approvals.

Pointon commented on the UK housing market, saying: " There are signs that the number of homes being put up for sale is rising, and as sellers become more realistic about the prices they can achieve that should attract buyers back into the market.”

Pointon added: "A firming in the level of demand will ensure that mortgage lending grows at a modest pace over the second half of the year."