Lending hits record highs
Published On 20 December 2006
Mortgage lending hit an all-time high of £33.1 billion last month, new figures have revealed.The research by the Council of Mortgage Lenders (CML) found lending figures were up nine per cent from October, and 19 per cent from the £27.7 billion lent last November.
Growing households and more available housing contributed to the surge, the CML said, which has led to a ten per cent growth in house prices this quarter compared to a three per cent to five per cent growth at the start of the year.
"The housing market is undoubtedly in robust shape as we move towards the New Year," said CML director general Michael Coogan.
He predicted "another record breaking year" for 2007 with mortgage lending remain strong over winter and gross lending totalling around £360 billion.
Separate research from the Building Societies Association (BSA) found gross advances from building societies totalled £4,597 million last month, compared to £3,891 million last year.
BSA director general Adrian Coles said the "buoyant performance" of the housing market led to the assets of the building society sector rising to over £300 billion in November.
Approvals – agreed loans that had not yet been made – were up 16.5 per cent to reach record levels, and net loans were the highest for three years.
"This suggests that the rate rise in August has had little effect on the demand for mortgages," Mr Coles added, and predicted the housing boom would "continue to perform strongly into spring 2007".
