Despite this gradual improvement, lending figures have essentially been static at the 52,000 mark for the last four months.
Mortgage approvals remain well below the average of 88,000 seen since 1993, according to Howard Archer, chief UK and European economist at Global Insight.
“Furthermore, housing market activity is likely to be pressurized appreciably in the early months of 2012 at least by weakened economic activity, rising unemployment, muted wage growth and very low consumer confidence. In addition, credit conditions may well tighten, making it harder to get a mortgage,” said Archer.
According to Hometracks’ January survey the number of new buyers registering with agents fell by 10.5% with agreed new sales down by 14.3%.
Archer predicts house prices will fall 5% over 2012.
