Home loans are still subdued as jitters ruin hopes of spring bounce

There was no spring bounce in the housing market as economic and political uncertainty put off would-be buyers.

Figures from the Bank of England today showed 49,871 mortgages were approved in April, fewer than 1000 more than the 49,008 approved in March.

It was also well below the recent peak of nearly 60,000 in November and the average monthly level of 91,500 since 1993.

Economists reckon 70,000 to 80,000 mortgages need to be approved each month for house prices to remain stable.

Howard Archer of IHS Global Insight said: "The housing market is finding it difficult to regain momentum after flagging at the start of 2010.

"House prices will struggle to make significant gains over the coming months."

Vicky Redwood of Capital Economics said: "Housing market activity is still languishing at relatively low levels. The recent rise in house prices is unsustainable.

"What's more, with consumer confidence weakening again, credit conditions slow to loosen and a fiscal squeeze looming, we still think that approvals will struggle to rise any more quickly than this."

Figures from the Building Societies Association showed balances held in savings accounts at mutuals rose by £929 million in April compared with a rise of £534 million in March.