Mortgage lending picks up as housing market makes 'meaningful' recovery
Mortgage lending for both house purchase and remortgage purposes is trending upwards, say two new sets of data.
The Council of Mortgage Lenders said gross lending in June was £15bn, up 2% from May and 26% higher than in June last year, making it the highest monthly estimate since October 2008.
The CML said there is a “meaningful recovery in the housing market”.
CML chief economist Bob Pannell said: “In recent months, we have seen the strongest performance for mortgage lending since 2008.
“However, although the pace of first-time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels.”
David Brown, commercial director of LSL Property Services, said: “Things can slowly get better. ‘Can’ being the operative word here. A whole year of months like June would bring gross mortgage lending to half its 2007 peak.”
According to the Bank of England Trends in Lending report, mortgage approvals for both house purchase and for remortgaging rose over the three months to May, with the number of house purchase approvals in May the highest since December 2009.
Source: Estate Agents Today Article.