Mortgage lending soared to a seven-year high in July as the housing market continued to gain momentum, figures showed today.
A total of £22bn was advanced during the month, the highest level since July 2008, according to the Council of Mortgage Lenders (CML).
The group said the figure, which was also 9 per cent above lending in June, was in line with its expectations that mortgage advances would strengthen during the second half of 2015, following a subdued start to the year.
Activity in the housing market was muted in the run up to May’s General Election as many potential buyers adopted a ‘wait and see approach’, but it has bounced back following the Conservative victory.
A total of £22bn was advanced during the month, the highest level since July 2008, according to the Council of Mortgage Lenders (CML).
The group said the figure, which was also 9 per cent above lending in June, was in line with its expectations that mortgage advances would strengthen during the second half of 2015, following a subdued start to the year.
Activity in the housing market was muted in the run up to May’s General Election as many potential buyers adopted a ‘wait and see approach’, but it has bounced back following the Conservative victory.
A CML economist, said:
“We expect lending activity in the rest of the year to be underpinned by
improving economic fundamentals, but kept in check as any upward
pressure on house prices further stretches affordability for some
buyers.
“Today’s data is in line with our forecast that gross lending will rise to £209bn this year, 3 per cent higher than in 2014.”
Meanwhile, Government figures also released today showed a fall in the number of new build homes being built.
Only 33,280 new properties were started in England during the three months to the end of June, 14 per cent fewer than in the first quarter of the year and 6 per cent down on the same period of 2014.
Within the total, the number of private homes being built dropped by 12 per cent quarter-on-quarter, while housing association starts dived by 23 per cent.
“Today’s data is in line with our forecast that gross lending will rise to £209bn this year, 3 per cent higher than in 2014.”
Meanwhile, Government figures also released today showed a fall in the number of new build homes being built.
Only 33,280 new properties were started in England during the three months to the end of June, 14 per cent fewer than in the first quarter of the year and 6 per cent down on the same period of 2014.
Within the total, the number of private homes being built dropped by 12 per cent quarter-on-quarter, while housing association starts dived by 23 per cent.
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