Record February for mortgage lending

Posted: 22 Mar 2006 10:45:58 GMT

            Property News - Record February for mortgage lending

As the recovery of the UK property market gathers pace, a new report has indicated that February saw record levels of mortgage lending.

The Council of Mortgage Lenders (CML) has said the gross mortgage lending reached £21.8 billion in the month, which is 22 per cent higher than the £17.9 billion lent in February 2005.

February is generally the slowest month in the year for property transactions and so the impressive figures again demonstrate that confidence is flowing through the industry.

While sellers are happy they will be able to demand a good price, buyers are again confident that it is a good time to enter the market, while recent reports have indicated that first-time buyers are also expressing an interest again.

"Confidence in the housing market is strong and demand has returned to the levels we witnessed two years ago," said CML director general Michael Coogan.

"Areas which saw sluggish activity over the past couple of years such as London and the south-east are now seeing a clear strengthening in house prices," he added.

Mr Coogan went on to say that conditions are conducive to a continuation of this trend, with the economy "in good shape" and interest rates looking stable. At the same time, he predicts a slight moderation in activity towards the end of the year.

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