According to the latest data from the Bank of England, mortgage approvals hit a two-year high in July 2019.
The lending data indicates that there were 67,306 mortgage approvals in July, which represents a 1.2 per cent increase on June’s figure.
It also means that it has reached the highest level since July 2017, while rising above the six-month average figure of 65,661.
The Bank of England (BoE) said that net mortgage lending rose by £4.6 billion, which is the largest increase since March 2016.
In a statement, the BoE said: “This was the strongest since July 2017, but remains within the very narrow range seen over the past two years.”
Despite the increase in mortgage approvals, official data from HM Revenue & Customs (HMRC) indicates that property transactions are declining, suggesting that there are fewer cash buyers in the market.
The data also supports statistics from the National Association of Estate Agents (NAEA) which stated that the number of homes registered for sale rose in July 2019, with Land Registry data showing a 15.3 per cent increase in the number of new homes sold.
Experts have stated that a mixture of low inflation and pay growth have contributed to consumer spending growth, which has resulted in an increase in mortgage approvals again in July.
Michael Biemann, Chief Executive of Selina Finance, said: “Mortgage approvals for house purchase hit a two-year high in July, suggesting that our looming departure from the EU is causing people to act rather than sit on their hands.
“Nobody knows quite what will happen if we leave the EU at the end of October and so people are taking action now, while they are still in control.”