"The decline in house prices should be limited by recent healthy employment growth and low interest rates, while mortgages could become increasingly available helped by the FLS"
- Howard Archer, an economist at IHS Global Insight
The number of mortgages approved in the U.K. rose more than initially expected in September, helped by the BoE's new credit-easing plan, which increased the availability of home loans. Mortgage approvals increased to 50,024, up from 47,921 a month earlier and above analysts' expectations of an increase to 49,000. At the same time, net lending to individuals in the U.K. rocketed to 1.7 billion pounds in September from a decline of 300 million in August.
"The decline in house prices should be limited by recent healthy employment growth and low interest rates, while mortgages could become increasingly available helped by the FLS," Howard Archer, an economist at IHS Global Insight in London, said before the data was released.
"However, we are doubtful that the economy can grow fast enough on a sustained basis in the near term at least to really help the housing market."
The FTSE 100 Index turned lower 0.20 per cent to 5,795.10. The broader FTSE All-Share Index fell 0.17 per cent to 3,029.49.
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