Mortgage approvals for house purchases rose 3% in January to 75,300 from the December low of 73,000 according to Connells Survey and Valuation’s latest data.

Non-seasonally adjusted approvals rose to 50,600 from December’s 50,000, which is the first increase in mortgage approvals since May 2007.

Despite this improvement, the January figure is the weakest January since Bank of England records began in 1994. Compared to January 2007, the decline in approvals is 38%. Mortgage approvals have fallen in 10 of the last 12 months.

Ross Bowen, managing director of Connells Survey & Valuation, said: “The mortgage market may finally be finding a floor after months of decline caused by higher interest rates, the reduced supply of credit from mortgage lenders and the lack of consumer confidence. We should not read too much into one month’s numbers as this is still the weakest market in 13 years and the ongoing impact of Home Information Packs (HIPs) following full implementation in December is unknown.
“Nevertheless, Connells has seen a rise in housing stock coming onto the market and renewed interest from househunters. The latest rate cut will help to stimulate demand, but only if mortgage lenders pass on lower rates to their customers.”