Gross mortgage lending up 21% in March
Latest figures released from the Council of Mortgage Lenders (CML) have showed that mortgage lending rose at a substantial rate during March.
The statistics show that gross mortgage lending during March reached £16.5bn, a 21% increase from the £13.6bn recorded in February. As a result, lending in the first quarter of this year totalled £44.9bn.[1]
Despite this significant rise, gross mortgage lending was actually down 12% on the last three months of 2014, and down by 3% on the same period last year.[2]
Stable
Chief Economist of the CML Bob Pannell, feels that the figures show stability. Pannell said that, ‘the underlying picture is stabilising. Sentiment and activity are showing early signs of improvement and should be further supported by the effects of stamp duty reform.’ He said that the CML, ‘expect to see lending strengthen over the next few months, albeit from a relatively sluggish start in 2015.’[3]
Brian Murphy, Head of Lending at the Mortgage Advice Bureau, agreed with Pannell about the positivity of the statistics. Murphy said that the data showed that, ‘housing activity is back on track.’ He went on to say that, ‘the fall in February was not unexpected given the seasonal slowdown but it is encouraging to see that lending has risen 21% over the month.’[4]
Murphy also rebuffed the notion that the upcoming election had caused market activity to slow, saying that, ‘there is still appetite in the market for lending and consumer demand has also held strong.’[5]
Optimism
Additional figures released by the HMRC also gave cause for optimism. Mr Murphy pointed out that, ‘housing transactions rose above 100,000 for the first time in four months in March,’ and went on to say that, ‘this should have a knock-on effect on mortgage completions, lending to further growth.’ He warned however that, ‘with housebuilding levels still trailing behind consumer demand, long-term growth could be stunted if this imbalance is not addressed.’[6]
Gross mortgage lending up 21% in March
Peter Rollings, CEO of Marsh and Parsons, said that the lending figures showed a market, ‘emerging into a spring full of promise.’ He believes that the, ‘significant increase from February,’ is welcome, but it is, ‘the year-on-year figure that is even more encouraging when you consider how strongly the property market began in 2014.’[7
Rollings also thinks that after the forthcoming election, ‘buyers and seller will soon have a more concrete idea of what the future holds for the property market and will be able to act more decisively.’ When this is married up with features such as improving mortgage rates and the traditionally strong spring to summer period, Rollings suggests that, ‘the outlook is rosy,’ for the property market.[8]
[1-8] http://www.propertyreporter.co.uk/hero/gross-mortgage-lending-hits-165bn-in-march.html