A bounce may have returned to the housing market as figures this morning show UK mortgage approvals rose to a 14-month high of 47,850 in June. This is beyond expectations of 47,000 approvals and comes with the news that house prices held their value in July for the third consecutive month.

The UK property market is experiencing renewed interest in summer - historically a popular time to buy - as plunging house prices and record low interest rates have piqued buyer interest. For the UK economy, recovery in the property sector is crucial though recent gains in the housing market have been offset by further declines in production.

The news failed to impact significantly on sterling exchange rates, currently valued at USD1.6370 and EUR1.1571.

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