Mortgage approvals in the U.K. rose in November to their highest level since January, signaling a possible stabilization of the nation's tumultuous housing market.
Bloomberg News, citing data from the British Bankers' Association (BBA), reports that U.K. lenders granted 33,634 mortgage approvals in November, up from 33,128 in October. November's originations registered $12.5 billion in lending, which the trade group said was ‘above the recent monthly average.’
The new data follows a somewhat pessimistic forecast from British property researcher Hometrack Ltd., which predicts a decline in home prices into 2013 as a result of the continued reluctance in the U.K. about borrowing. However, David Dooks, BBA statistics director, notes that the nation's households were ‘continuing to repay virtually as much as they borrow and, as people hold on to cash, deposits are growing by six percent annually. The situation is not dissimilar in the business world; businesses are holding back investment or expansion plans and building up cash reserves.’