Mortgage industry yet to recover

Data which shows an increase in the number of mortgage approvals should be put into context, it has been claimed.

Figures from the Bank of England show an increase from just over 38,000 in February to 43,414 in May.

However, Council of Mortgage Lenders communications manager Bernard Clarke has suggested this data should be looked at from a long-term perspective.

"We are possibly past the worst in terms of mortgage business … but in terms of any sort of recovery there is certainly little sign of strength in that recovery," he explained.

The expert hinted the market was still at a low point historically – a consensus backed-up by figures from the Building Societies Association, which show the extent to which lending has reduced.

Around £1.5 billion was distributed in May this year, while £3.5 billion was given the seal of approval in May 2008.

Homeowners finding it difficult to move in the current environment may decide instead to construct a loft conversion by adding a roof light.