The CML data shows a rise of 29% in gross mortgage lending in July this year, compared to the same time 12 months ago. The figures also show a 12% rise from June 2013 to July 2013, taking gross mortgage lending to £16.6 billion.
According to the CML mortgage lending is now at the highest level since October 2008, when the housing and mortgage markets were in the grip of the credit crunch.
It is clear from the CML’s figures, that the various Government initiatives, such as the Help to Buy and Funding for Lending schemes, are now having a significant effect on the housing market.
However, with the second half of the Help to Buy scheme due to be rolled out at the start of 2014 and interest rates seemingly on hold for another three years, the level of mortgage lending is likely to continue to rise, causing some experts concern that we are heading for yet another housing bubble.
Commenting on the figures, Caroline Purdey, Market and Data Analyst at the CML, said: “An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.”
“Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.” (Source: CML)