Mortgage lending hits 11 year high in August

Mortgage lending in August was the highest for any August since the same month in 2007 – before the crash.

The Council of Mortgage Lenders estimates that gross mortgage lending reached £22.5bn in August – 7% higher than July’s lending total of £21.1bn and 15% up on the year.

In August 2007 gross lending reached £33.6bn.

CML senior economist Mohammad Jamei said: “Widely voiced fears in recent months about the housing market have proved to be wide of the mark.

“Prospects for house purchase activity post-referendum look slightly subdued when compared to late 2015 and early 2016. However, sentiment in the market recovered in August. This is reflected in stronger than expected transaction figures, and in our gross lending estimate.”

Paul Smith, CEO of Spicerhaart, said: “Projected fears about the collapse of the housing market in the wake of a Brexit vote were misguided.

“Lenders are very clearly still open for business.

“However, there are still constraints on the market, namely the lack of stock, which has the potential to reduce the number of transactions and therefore reduce mortgage activity, constraining the level of growth that we were seeing earlier on in the year.”

Smith said his own firm is starting to see renewed buyer interest, particularly outside London.

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Written by: Houseladder