Gross mortgage lending increases 21 percent in UK
According to the The Council of Mortgage Lenders datas, gross mortgage lending in UK reached £17.9 billion in January. Gross mortgage lending fell 9% in January compared to December from £19.8 billion, but 21% higher than the £14.8 billion lent in January last year. This is the highest lending total for a January since 2008 (£25.2 billion).
“Lending started the year on a positive note. Our monthly estimate is 21% higher than a year ago, with the current growth rate in lending similar to the closing months of 2015.” said CML economist Mohammad Jamei.
“UK market fundamentals are helping to underpin this recovery, with real wage growth, an improving labour market, competitive mortgage deals, and government schemes all supporting household demand. We still only see limited upside potential going forwards, as the number of properties for sale on the market remains low and affordability pressures weigh on activity. Upcoming tax changes in the buy-to-let sector are adding an element of uncertainty to the market.” he added.