Fri 18 Mar 2016 View all news articles
Data from the Council of Mortgage Lenders shows that gross mortgage lending reached £17.6 billion last month - that's the highest February figure since the downturn was beginning in 2008.
The February 2016 figure is five per cent down on the previous month, reflecting the end of the New Year flurry of lending caused by purchasers wanting to beat the April stamp duty surcharge deadline.
However, the CML figures show loans to first-time buyers totalled 11,429 in February, a significant increase on the recent past and a sign of a strengthening housing market according to some analysts. Perhaps more significantly, CML economist Mohammad Jamei says it is possible that there will be no UK interest rate rise this year, further bolstering buyers' confidence.
"Lending continues the year on a positive note, with our monthly estimate showing an increase of 30 per cent in February compared to a year ago. This growth rate is in line with what we saw in the closing months of 2015. The recovery is being underpinned by market fundamentals in the UK, as wages grow and unemployment falls, helped by government schemes and competitive mortgage deals" says Jamei.
"But we think it unlikely that there will be any significant acceleration in lending" he cautions.
"While there may be a slight current boost to lending as some transactions seek to complete before the April 1 tax changes in the buy-to-let-sector, this is likely to be followed by a slight fall in activity. Affordability pressures continue to weigh on activity, as does the low number of properties coming on the market, though this has been improving very recently."
With so many eager buyers out there, now is the perfect time to put your property on the market. If you are thinking of selling, please book a free market appraisal to determine the value of your property.
Source: Estate Agent Today
As leading Wirral estate agents and lettings agents we have plenty to talk about and like to give our opinions on a few things too! Read about what we have to say, our latest news and industry news.