The Bank of England has revealed that loan approvals for house purchase numbered 67,701 in October, compared to the average of 60,685 over the previous six months.

The number of approvals for remortgaging was 35,261 compared to the average of 33,827 over the previous six
months.

However, loans (including overdrafts) to non-financial businesses decreased by £1.1 billion in October, compared to the average monthly decrease of £1.3 billion over the previous six months.

David Brown, commercial director of LSL Property Services, said: “Momentum is the target now, and it seems we’re gathering speed. The property market isn’t anywhere near what would once have been called ‘normal conditions’, but we’re going in the right direction.

“Such momentum is a stepping stone to a self-sufficient mortgage market. Lending will have to run under its own steam at some point, and yesterday’s shock withdrawal of support from Funding for Lending makes that clearer than ever. But it’s worth realising that the Treasury’s Help to Buy scheme is only in its infancy. Help to Buy still has the power to have a significant impact – at least for a cohort of buyers.

“Further ahead, the real challenge is translating healthier prices and transactions volumes into more homes. If house building starts to happen to a significant extent, then the property industry will be less of a zero-sum game – and the fundamental prospects for first-time buyers would be transformed.”