(Adds details, economist reaction)
LONDON, March 29 (Reuters) - The volume of mortgages
approved by British lenders picked up in February by more than
expected, adding to signs that the downturn in the housing
market may be levelling off, Bank of England data showed on
Wednesday.
The BoE said lenders approved 43,536 mortgages in February,
up from 39,647 in January. A Reuters poll of economists had
pointed to approvals of around 40,500.
The increase follows reports from the Royal Institution of
Chartered Surveys and mortgage lender Halifax that show the
downturn in the housing market is no longer accelerating, even
if conditions remain weak.
Britain's housing market slowed sharply after September
when former prime minister Liz Truss's economic plans triggered
a spike in mortgage rates and a dramatic fall in approvals.
"Reflecting the partial unwinding of the spike in
mortgage rates following the 'mini' budget, mortgage approvals
rose to their highest level for three months in February," said
Andrew Wishart, economist at consultancy Capital Economics.
"However, with mortgage rates unlikely to fall much
further in the near term, lending will remain weak."
Net mortgage lending value terms, which lags approvals,
fell in February to 738 million pounds from 2 billion pounds in
January, the lowest reading since July 2021.
(Reporting by Andy Bruce, Editing by Paul Sandle and Sarah
Young)
Messaging: @brucereuters))
