Reuters reports that British banks approved 80% more new home mortgages last month as compared with a year before.
Home prices in Britain dropped by about 20% in 2008 but have been increasing this year.
Demand for re-mortgaging continued to fall and gross mortgage lending was a third lower than at the same time last year.
Still, analysts said the recovery in mortgage approvals, a lead indicator of housing demand, provided further evidence that record low interest rates were tempting buyers back to the market.
Although still low by historical standards, mortgage approvals have more than doubled from record lows hit last November.
“Funding conditions and buyers’ confidence are improving as the housing market stabilises,” said Amit Kara, UK economist at UBS.