Press Release Summary = Those waiting patiently for a slump in the housing market to add to their portfolio or start a buy-to-let empire may have to wait just a little longer, as this year saw the highest-ever amount of mortgage lending in February.
Press Release Body = Those waiting patiently for a slump in the housing market to add to their portfolio or start a buy-to-let empire may have to wait just a little longer, as this year saw the highest-ever amount of mortgage lending in February.
The news, which may conversely be good news for those who already have a number of rental properties and are hoping that rental demand stays high, has come in the form of figures from key industry players the Council of Mortgage Lenders (CML) and the Building Societies Association (BSA).
From 2006, the CML recorded a nine per cent growth on last year\'s £22.5 billion to £24.6 billion, although this is down slightly from the £26.6 billion seen in January. CML director general Michael Coogan said: \"This is the highest February lending figure on record and reflects the continuing strength of the market and the strong desire of many people to get a foot on the property ladder or move house.
\"Recent speculation about whether or not interest rates will go up seems to have had little impact upon lending levels and we still expect gross lending to reach around £360 billion this year.\"
This announcement could also have those hoping to sell off a few properties and raise cash for retirement or a dream purchase rubbing their hands with glee. The BSA statistics also bear out this growth, with February seeing both it\'s strongest ever lending in value, but also the highest number of approvals on record for the month, at £4,917 million. This is up from £3,646 million in the corresponding month last year. Gross advances from building societies saw a similar level of increase, rising from £3,183 million to £4,214 million over the same period.
Adrian Coles, director general of the body, said: \"A reasonably strong economic outlook, especially continuing robust employment, should ensure that there is still demand for mortgages, just not at record highs.\"
However, Mr Coles also conceded that this may be the peak of the astronomic growth experienced recently, with these figures yet to accurately represent the bite of the last few interest rate rises.
This opinion is one echoed by a third professional body, the British Bankers\' Association. Statistics from the group indicated a February lending rise of £5.2 billion, lower than the £5.4 billion of last month and the six-month average of £5.7 billion.
L: HM CML announces highest February lending figure on record S: HM Highest February lending on record says BSA S: http://www.headlinemoney.co.uk/Company/Media/BBA/CDS_BBA_200307.pdf
2025
