By Matt Falloon and Christina Fincher

LONDON (Reuters) - Mortgage approvals rose last month for the first time in over a year, data showed on Wednesday, but analysts cautioned the marginal pick up from August's record low did not portend a housing market recovery.

Mortgage lending last month was more than twice market forecasts, according to Bank of England figures, but that followed a downward revision to August which showed the first net repayment since the series began in 1993.

A global shortage of capital has forced many banks to clamp down on lending over the past year, squeezing the lifeblood out of the property market. House prices are already down 13 percent from their peak and Prime Minister Gordon Brown warned last week that Britain is facing recession.

"September's household borrowing figures provide further evidence that housing activity has found a floor -- but at rock bottom levels," said Vicky Redwood at Capital Economics.

Figures from the Bank of England showed mortgage approvals for house purchase rose to 33,000 last month from a record low of 32,000 in August, the first rise since June 2007.

While the figure was marginally higher than expected, approvals are running at a third of their level a year ago, suggesting further weakness in the housing market -- especially given the recent escalation in the financial crisis.

RATE CUTS EYED

The data did little to alter expectations the Bank of England would continue to cut interest rates after an emergency 50 basis point cut to 4.5 percent this month.