Gross mort­gage lend­ing in­creases by 12 per cent in 2016

The Oban Times - - PROPERTY -

The Coun­cil of Mort­gage Lenders es­ti­mates that gross mort­gage lend­ing reached £20.4 bil­lion in De­cem­ber. This is four per cent lower than Novem­ber (£21.2 bil­lion), and four per cent higher than De­cem­ber 2015 (£19.7 bil­lion). This brings the es­ti­mated to­tal for the year to £246 bil­lion, a 12 per cent in­crease on 2015’s £220 bil­lion and the high­est an­nual gross lend­ing fig­ure since 2008.

Gross mort­gage lend­ing for the fourth quar­ter of 2016 was there­fore an es­ti­mated £62 bil­lion. This is a three per cent de­crease on the third quar­ter and closely matches the 61.8 bil­lion lent in the fourth quar­ter of 2015.

Com­ment­ing on mar­ket con­di­tions in this month's mar­ket com­men­tary, CML se­nior econ­o­mist Mo­ham­mad Jamei said: ‘ The UK hous­ing mar­ket, much like the wider UK econ­omy, ended 2016 on a gen­er­ally pos­i­tive note.

‘Ap­provals for house pur­chases have re­cov­ered strongly of late, and this should feed through to lend­ing fig­ures in the early months of 2017.

‘ The cur­rent avail­abil­ity of mort­gage credit is be­nign, and the real is­sue con­tin­ues to be a dearth of prop­er­ties on the mar­ket, which adds to the chal­lenges fac­ing would-be buy­ers.

‘Un­cer­tainty as­so­ci­ated with po­lit­i­cal fac­tors and prospective changes to the tax treat­ment of land­lords will weigh on prospects for the year ahead.’

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