Liquid error: wrong number of arguments (2 for 1) Gross monthly lending 23% up year on year for November | Marsh & Parsons Sales and Lettings Estate Agents London

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Gross monthly lending 23% up year on year for November

Mon 18 Jan 2016

Gross monthly mortgage lending for November was up 23% to 19.9 billion compared with November 2015
according to the Council of Mortgage Lenders (CML).

The CML also report that gross mortgage lending has dipped 9% from October 2015 as the market slows down
for winter.

CML economist, Mohammad Jamei, said: "Lending is set to finish the year stronger than it started, with the pace
of lending recovering over the summer months. As weve said for the best part of 2015, lending continues to be
supported by strong fundamentals, which are low inflation, strong wage growth, an improving labour market and
competitive mortgage deals.

"Reflecting this recovery, we estimate lending this year to reach 214 billion, up from our earlier estimate of 209
billion. Looking ahead, upside potential appears limited as a result of affordability pressures and new supply
challenges which will continue to weigh on activity."

Peter Rollings, CEO of Marsh & Parsons, said: This year wasnt as quick out of the blocks as 2014 in terms of
mortgage lending and overall housing market activity, but is now in much finer fettle than we saw 12 months ago.
A strengthening economy and favourable lending conditions means that transactions havent tailed off like they
did last year, although the seasonal slowdown in December is still to be expected.

The recent measures announced by the Government to build new homes and offer help to those looking to take
their first step on the property ladder are welcome gestures, but it will be some time before this intervention is
evident in the various monthly indices. The powers that be also need to be careful of artificially stimulating the
market at the bottom end while continuing to penalise those in the upper reaches.

Richard Sexton, Director of e.surv chartered surveyors, comments: While the global economic recovery
continues to be fragile, the last year has seen more solid improvements in Britain. Theres a new level of
flexibility within the housing market for many homeowners, and the range of mortgage options available has
gifted existing homeowners the opportunity to chase down the best deals. A healthier lending climate in general
has been carried by the vital combination of low inflation and strong wages a scenario that many expect to
continue into the New Year.

"But many first-time buyers are still feeling the chill. Whilst overall lending has risen, small-deposit lending has
stalled. It equates to just 16.3% of total house purchase approvals, leaving wishes of a new home by Christmas
unfulfilled for many. As house price rises continue their momentum, many first-timers are facing an uncertain
future. Lenders are increasingly happy to help first-timers with healthy credit ratings, but there is a serious lack of
entry-level homes, meaning a generation of aspiring homeowners cant make the most of the favourable financial
conditions.

"With interest rate rises again on the agenda, this could create a demand for remortgage in H2 2016, but certainly
for now, the lending market seems firmly back on its feet."

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