The Bank of England has revealed loans approved for house purchases increased by 5,000 from September to October. The number of new mortgage approvals for home purchases were a seasonally adjusted 113,000 in September, up 4.6% from 108,000 in August.

The Bank noted that loans for other purposes were also higher (by 1,000), but those for remortgaging were lower (by 2,000)

The increase in total net lending to individuals in October (£8.9 billion) was larger than in September and above the previous six-month average. The twelve-month growth rate continued to weaken, to 10.2%.

Within the total, the increase in net lending secured on dwellings (£7.6 billion) was larger than in September and the previous six month average. The twelve-month growth rate was unchanged from September at 10.2%.

The increase in consumer credit (£1.3 billion) was higher than in September. Credit card lending was £0.2 billion higher than in September while other loans and advances were slightly lower. The annual growth rate of consumer credit continued to fall, to 10.5% in October

The Royal Institution of Chartered Surveyors said the figures confirm that a gradual recovery in housing market activity was maintained in October. While the recovery in the market began in the early stages of the year, the interest rate cut in August had boosted confidence.

Renewed interest in the market is now evident, not only through these mortgage approval numbers, said the surveyors, but in the number of buyers making enquires as captured in their housing market survey, which rose for the fifth consecutive month in October.