The recent base rate cuts from the Bank of England may possibly have improved consumer confidence and mortgage approvals, it has been revealed.

According to the survey by a leading market research and consumer insight agency, GfK NOP, consumer confidence is at its highest level since May 2008 after recent figures released by the Bank of England revealed that the number of mortgages approved in February increased by £1.5 billion in net lending.

Rachel Joy, a spokesperson for GfK NOP said: “[Confidence] still remains historically very low, but this suggests that lower interest rates and a better picture for household bills are restoring some confidence among UK consumers."

Price comparison site, moneysupermarket.com said: "This is undoubtedly good news and we should be cautiously optimistic about its implications for the housing market. People are being enticed on to the housing ladder by historically low rates and decreasing house prices."

However, despite the levels of confidence and increase in mortgage approvals, Brits are being informed that this does not mean Britain is out of recession.

Seema Shah, property analyst at Capital Economics said: "Unfortunately, given the exceptionally weak economic outlook, a very modest recovery in the number of mortgage approvals is probably the best we can hope for this year."