Mortgage approvals jump to highest level for more than two years.

The UK housing market has shown signs of resilience after figures revealed high street banks approved the largest number of mortgages approvals for more than two years last month.

British banks last month approved the largest number of mortgages since February 2017, showing stability in the housing sector. Banks approved 42,989 mortgages in April, which is up from 40,564 in March and 11.5% higher than a year ago, marking the biggest annual increase since March 2016, according to seasonally-adjusted figures from industry body UK Finance.

Net mortgage lending rose by 1.795 billion pounds last month, a smaller increase than March’s 2.440 billion pound rise which was the largest in 15 months.

Britain’s housing market slowed sharply in the run-up to the original March Brexit deadline but consumer spending has remained solid, driving economic growth just as businesses have cut investment spending due to Brexit uncertainty.

In a news release by consulting firm, EY. Howard Archer, chief economic advisor to the EY ITEM Club, comments:

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March. It may very well also be that the housing market has benefited from recent improved consumer purchasing power and robust employment growth.”

“It is possible that the avoidance of a “no deal” Brexit at the end of March has provided some support to the housing market through easing some of the immediate uncertainty and concerns.”

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