Mortgage approvals fall again

Mortgage approvals fell for a third successive month in April, easing the pressure on regulators to take further action to cool the housing market.

There were 62,915 approvals for house purchases in the month, according to the Bank of England, below the consensus estimate of 64,500 and down from a recent peak of 75,838 in January. The approvals rate was the lowest since July 2013.

“The decline in activity is clearly more than just a flash in the pan,” said Samuel Tombs of Capital Economics. “Though recent falls may reflect temporary disruption caused by lenders adopting the Mortgage Market Review regulations, which were introduced in mid-April, surveys such as the Rics housing market survey have suggested for several months now that demand is fading.”

House prices rose 10.9% year-on-year in April, according to Nationwide. The total value of mortgage lending in April was £15.7 billion.