Mortgage approvals hit five-year high

After years in the doldrums, the property market continues to go from strength to strength according to new figures released yesterday.

Home loans hit five-year high

Pic: Getty

According to the Bank of England, mortgage approvals have soared in recent months, hitting a five-year high in this summer. A total of 62,226 home loans were agreed in August, compared to 60,914 in July, hitting their highest level since February 2008. Meanwhile, remortgages also increased to 36,225, their highest level since February 2011.

But as the housing market shows signs of recovery, the cost of buying a property is also rising, with September house prices showing their biggest month-on-month increase in more than six years.

Furthermore, David Cameron recently announced that the launch of the government's Help to Buy programme, which aims to help buyers put down a deposit on a home, will be brought forward, potentially boosting the property market even further.

Jonathan Hopper, managing director of property search consultants Garrington, told the Daily Express: "The mortgage market is out of the infirmary and running, not walking, back to health. The resurgent property market is matching it step for step.

"It's telling that the Nationwide House Price Index is now showing average prices are on the up in every region for the first time in a long time."

What do you think? Is Britain heading for another property market bubble? Leave your comments below...