Lending rises 6% in February, say CML
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Gross mortgage lending increased to £9.2bn in February, a 6 per cent rise from £8.7bn in January, according to the Council of Mortgage Lenders.
The trade association says the figures are unusual but unsurprising, given that the end of the stamp duty distorted lending figures in both December and January.
The figures were down 6 per cent on the £9.7bn recorded in February a year earlier, but the CML says the first two months of 2010 are in line with their lending forecast of £150bn for 2010.
CML economist Paul Samter says: “As we look forward, we expect emerging signs of improvement as confidence in the economy grows and we move past the election. However, the need for the authorities to address fiscal deficit will inevitably slow the economy. At the same time the funding markets, while certainly better than a year ago, remain difficult and will limit the flow of available housing finance.
“Given the short-term weakness and distortions in the housing market, as well as more properties coming onto the market, it was perhaps unsurprising to see falls in some of the monthly house price indices in February. With activity unlikely to pick up much in the short term, we would expect to see continuing price fluctuation in the coming months.”
Mortgages for Business managing director David Whittaker says: ““Given February is a short month it is encouraging to see an increase in the lending figures despite having come from such a low base in January. But the amount of funding available in the lending market is going to remain restricted this year and that will prevent further surges in growth.
“Without an injection of new funding in to the market we’re only likely to see marginal growth in lending this year.”
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