A recovery in buyer demand, which is exacerbating a housing supply imbalance and should keep house prices rising, has been confirmed by the Bank of England.

New figures published by the bank yesterday reveal the number of mortgages approved in October was 67,518, says Sky News, a rise of six per cent from September's total of 63,594 and ten per cent up on the 61,381 loans approved in August, amid a slowdown brought about in part by economic uncertainty related to the Brexit vote.

Mortgage approvals are now at the highest level since March, when activity reached a peak from which the market has steadily declined following an increase in stamp duty on second homes in April.

Martin Beck, a senior economic advisor to the EY Item Club, said: "Housing market activity faltered in the middle of the year, which is likely to reflect uncertainty surrounding the EU referendum and distortions caused by April's increase in stamp duty.

"However, mortgage activity has recovered and is now at similar levels to those seen through much of 2015.

Yesterday's report also showed a £1.6bn increase in consumer credit, a year-on-year increase of 10.5 per cent and the strongest in 11 years.

In general, surveys have suggested house purchase numbers are lower than they were a year ago but are still well ahead of supply, which has stopped house prices falling despite the uncertainty caused by Brexit.

According to a study by the National Association of Estate Agents this week, there are now more than ten buyers for each property for sale in the UK.

www.theweek.co.uk