LONDON, Aug 30 Reuters British lenders approved the highest number of mortgages in July since the start of the minibudget crisis in 2022 under former Prime Minister Liz Truss, according to Bank of England data that added to signs of momentum in the housing market.

Lenders approved 61,985 mortgages, the most since September 2022 when the announcement of unfunded tax cuts caused a jump in borrowing costs.

The figure was higher than the median forecast of 60,500 in a Reuters poll of economists.

The BoE data also showed a net increase of 2.786 billion pounds 3.67 billion in mortgage lending in July, the biggest rise since November 2022.

Data published earlier on Friday by Nationwide Building Society showed house prices unexpectedly fell in August for their first monthly drop since April but the lender said the outlook for the property market was likely to strengthen.

Paul Dales, chief UK economist at Capital Economics, said the BoE figures suggested the fall in the Nationwide39;s house price index was probably a blip.

The rise in approvals is consistent with house price inflation of around 2.0 in six months time, Dales said.

In annual terms, prices were 2.4 higher than in August last year, the fastest increase since December 2022, Nationwide said.

The BoE cut interest rates on Aug. 1 to 5 from a 16year high of 5.25 and it is expected to cut them again by a further quarter point before the end of the year, adding to the sense of recovery in the property market.

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