20th August 2013
The renewed UK property boom appears to be on a roll as mortgage lending reached its highest level since 2008 last month according to estimates writes Philip Scott.
Trade body, the Council of Mortgage Lenders has forecast that total gross mortgage lending in July increased to £16.6bn, representing a rise of 12 per cent from £14.8bn in June and 29 per cent higher than the total of £12.9bn in July last year.
This is the highest monthly estimate for gross lending since October 2008, when it reached £18.6bn.
CML market and data analyst Caroline Purdey says: “An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.
“Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.”
This latest news is among a flurry of positive data emerging from the UK property market. Just last week, research from the Royal Institution of Chartered Surveyors (Rics) showed that UK house prices grew at their fastest pace since 2006 in July having delivered a fourth successive month of gains with the increase being enjoyed in all parts of the country, not just in the south east.
According to its July’s Residential Market Survey, the increasingly upbeat mood in the market is being underpinned by the resurgence in new buyers.