Housing market 'may be starting to recover'

The housing market may be starting to recover after encouraging mortgage approval figures were announced, according to one financial expert.

Capital Economics' Vicky Redwood suggested the market may have reached a bottom and could soon bounce back - something that might encourage property owners to invest in a home improvement such as a garden studio to help make their house stand out if they want to put it on the market.

Ms Redwood cautioned it may be too early to draw any solid conclusions but explained Nationwide figures showing a 0.9 per cent increase in house prices in March was a sign for optimism.

"It might also just be a demand thing - that households are feeling more confident about undertaking mortgages and that demand wasn't there before," she said.

The economist went on to suggest people would have to wait another few months to make a proper assessment.

Bank of England statistics published on March 30th show the number of loans approved for house purchases rose by 19 per cent in February, compared to January's figures.