Gross mortgage lending reached £22.1bn in June some 9% higher than May and 3% higher than last year, according to the latest UK Finance estimates.
As such gross mortgage lending for Q2 2017 stood at an estimated £60.3bn – up 3% increase on Q1 and 6% on the £57.1bn lent in the second quarter of 2016.
Mohammad Jamei, UK Finance senior economist, said: “A period of belt-tightening now seems to be underway as inflation begins to erode consumer spending power, and consumer confidence weakens. Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year.
“Looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.”
Jeremy Duncombe, director at Legal & General Mortgage Club, said: “Today’s figures show that gross mortgage lending remained strong in June, despite the political rumblings.
“However, the issue of long-term affordability persists. With average house prices now six times higher than the average salary, and up to 11 times more in London, many want-to-be homeowners are unable to get on the housing ladder.
“A recent study by Nationwide Building Society showed buyers could borrow up to £11,500 more if energy efficiency ratings were to be factored into lending criteria, and it is these types of initiatives that need to be considered as part of the solution .
“If buyers can responsibly borrow enough to keep up with price inflation, rather than waiting potentially years longer to save for a deposit, it will give them a greater chance of finally getting onto the increasingly illusive property ladder.”
Mortgages – Find cheapest rates from 0.98%
|Mortgages - Find cheapest. Rates from 0.98%. 1st time buyers, remortgages, self-employed, adverse & CCJ, Landlord buy to let. Compare now|
|Sell or Let Property FREE on Houseladder 0% no fees. Free property advertising. List 1 to 1000 properties to millions of buyers and tenants. Upgrade to a Premium advert for only £30 and sell or let your property FASTER! Create Ad|
|Make Money - Earn £250 to £2000+ per month part time. Get paid every month for work you do once. Work from home. Flexible hours. Free training. No experience needed. Major UK PLC company. Find out how >>|
|How To Save Property Tax - Updated Sept 2017 “How To Save Property Tax” is widely regarded as THE tax bible for property investors. The 21st edition has just been published (Sept 2017) and is completely up to date. Read now|