Mortgage Lending Up – February 2010
Gross Mortgage Lending Increases In February 2010
Lending has improved by 6% in February according to the Council of Mortgage Lenders (CML). The figure for February was an estimated £9.2 billion as against £8.7 billion recorded for January 2010.
February being the shortest month may have indicated a strengthening market but the end of the stamp duty holiday caused distorted figures for December 2009 and January 2010.
Year on year the February 2010 figure is down by 6% from the previous February; however the overall figure doesn’t suggest a deviation from the CML forecast of £150 billion for 2010.
CML economist Paul Samter commented:
“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 likely limit the flow of available housing finance.
“Given the short-term weakness and distortions in the housing market, in addition to signs of 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 further modest volatility in the coming months.”
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