Mortgage approvals have hit their highest levels in 18 months according to Bank of England data, which experts say shows that confidence is returning to the property market.

According to the Bank of England, there were 61,300 net mortgage approvals in March. That compares with 60,500 in February and 52,000 in March 2023.

The 61,300 net approvals, an indicator of future borrowing, is the highest total since the 65,400 registered in September 2022.

Additionally, gross mortgage lending rose from £18.6billion in February to £20.1billion in March, its highest level in 13 months.

Ahead of the Bank of England’s expected cuts to its base rate, which is currently 5.25 percent, lenders have been competing on mortgage rates.

The Bank said that the effective interest rate on newly drawn mortgages fell from 4.9 percent to 4.73 percent in March.

EasyMoney chief executive and founder Jason Ferrando said the increase in mortgage approvals was impressive, given that the Bank has yet to cut its base rate.

He added: “When it (a rate cut) does materialise, this will bring a further boost to a property market that is now poised for a far more positive year.”

However, Karim Haji, KPMG’s global and UK Head of financial services, warned that confidence could falter if the Bank does not move on rates.

“Recent increases in mortgage approvals for house purchases could be curtailed if the Bank delays its decision to cut rates,” he said.