Hopes that the housing market is being nursed back to health have received a welcome boost after it was revealed new mortgage advances increased by 20% during the third quarter of the year. However, a figure of £40 billion remained significantly short of the £61 billion advanced in the same period a year earlier. Amongst other data released by the Financial Services Authority, the number of new arrears cases has continued to fall and was down by 10% in the quarter to 46,000. At the end of the quarter, the number of accounts in arrears had fallen 2% on the previous three month period to 395,000, but remained 16% higher than a year earlier. New possessions totalled 14,000, a 2.8% increase on the second quarter, but some 5% below the peak seen at the start of the year.