Mortgage approvals by building societies in March were £1.5bn compared to £742m in February, according to the Building Societies Association (BSA).

Building society gross lending amounted to £1.4bn in March, compared to £3.6bn the previous year. Building societies also experienced a small net withdrawal of £196m from savings accounts in March. However, with interest credited, balances rose by £2,140m.

Adrian Coles, director-general of the BSA, said even adjusting for seasonal influences, the approvals were the highest since November.

“Although this may suggest a very slight recovery in activity in the housing market over the next few months the environment nevertheless remains very challenging.”

Coles continued: “The Bank Rate was reduced to 0.5% at the beginning of March, and the figures show the impact of low interest rates and economic conditions on people’s ability and willingness to save.”

Source: Mortgage Solutions