From This is Money:
But with mortgage criteria still tough and a lack of supply cited as the driving factor behind recent house price rises, economists warn the market could fall again next year.
The number of homeloans approved for buyers rose by 7.5% to 38,181 in July: 28.5% higher than the six-month average and 77% higher than the same month last year.
Mortgage approvals for homebuyers have staged a slow but steady comeback from their lows recorded last winter, to reach the highest level since February 2008, but are still just under half the longer-term average.
A combination of a pool of cash rich buyers and a lack of supply of homes for sale has been credited as the driving force behind recent monthly house price gains posted by major studies.
The continued rise in mortgage approvals is likely to support this momentum in the coming months, but economists warn that house prices could fall back again next year.
Seema Shah, property economist at Capital Economics, said: ‘The one strange thing th…