In a move that should instil confidence in the construction industry to build more homes, the Bank of England has reported mortgage approvals grew in June for the first time since February.


67,196 mortgage applications were approved in June, which was up from around 62,000 in May (higher than the expectations of a group of economists answering a Reuters poll).


This is positive news for the construction industry were the fall in mortgage approvals had been seen as indicative as a slow down or potential bust in the housing market – having knock on impacts on the number of new projects being started.


It appears that the stricter rules that came into place after the Mortgage Market Review had caused a slight slowdown in the market; however it is now believe that this period of readjustment is coming to an end.