The Bank of England reported unprecedented rise in mortgage demand in November, which can boost housing market, adversely hit by slow demand in the property segment.

The Bank of England granted 4.85 per cent more mortgages in November as compares to the previous month giving approval to 60,518 mortgages during the period. The mortgage approvals in November are 200 per cent higher than the 27,162 figure for November 2008, the time when financial crisis was on its peaks.

The bank reported £1.5 billion rise in the total value of lending secured on dwellings as compared to a rise of £1.1 billion in October. The development reflects growth potential of the recession-hit housing segment which can see rise in prices during the year.

Estate agents and eminent economists asked for the need to for the lenders to become more flexible to support rising demand in the housing segment.

Oliver Gilmartin, Senior Economist of the Royal Institution of Chartered Surveyors (RICS), said, "Despite an expected increase in property listings and the onset of several headwinds during 2010, the current imbalance between demand and supply is set to underpin further price gains in the near term."