The number of mortgage approvals rose by a third in March, according to the Council of Mortgage Lending.
The CML said there were 31,000 mortgages granted in the month, up 29% on February – although still down by more than 30% on March 2008.
However, the CML warned that the position facing first-time buyers was still very difficult, with many unable to raise enough for a loan.
The average first-time buyer had to put down a deposit of 25% of the value of a property in March, compared with 11% a year earlier.
CML head of research Bob Pannell said: “Because the flow of lending is still constrained, there is a sharp dividing line in the housing and mortgage markets between those who can raise a substantial deposit and those who can’t.”
This is in accord with figures from HM Revenue and Customs, which recently reported that completed property sales leapt by 40% between February and March.
In total, there are currently 11.7m mortgages in the
