"House purchase activity has picked up significantly"

Posted: 19 Nov 2009 14:10:21 GMT

There has been a significant increase in house purchase activity since the beginning of the year, according to an economist for the Council of Mortgage Lenders (CML).

Commenting on figures that showed October's gross mortgage lending to be approximately £13.5 billion, Paul Sampter observed that there have been a number of changes in the type of lending seen since the start of the year.

He suggested that while house purchases have "picked up significantly", low levels of remortgaging have been seen due to equity constraints and few incentives for borrowers.

The latest lending statistics are in line with the CML's gross lending forecast for the year, he added, although "seasonal factors" may slow down the market in the coming weeks.

Earlier this month, the CML suggested that the stamp duty holiday may have helped an estimated 132,500 property buyers avoid paying the tax.

The raised threshold of £175,000 will remain in place until the end of the year - in 2010 it will revert back to £125,000.

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