UK Lenders are Approving More Loans

Banks/lenders reportedly approved 27,685 loans for house purchase in April 2009, compared to 26,671 loans in March 2009. 

It is said that there is overall evidence that the housing activity is likely to have passed it worst point.  It is thought that the pick up in housing market activity will be gradual and fitful for some time to come. 

The recession, forecast to be Britains worst since World War II, may be easing.  Retail sales rose for a second month in April 2009, while an index of services industries jumped the most since 1999.  Rising unemployment may still dim the housing market's prospects for recovery.

The home part of the mortgage market seems to have stabilized, more loans are being approved which is a good sign.

Unemployment is still a major factor and may influence the UK house prices to fall by as much as 14 percent in 2009. 

The risk of default on credit lines has risen and banks/lenders are inevitably going to be cautious because of the high levels of credit they extended relative to their capital base.