Gross mortgage lending was an estimated £17 billion in December, according to the Council of Mortgage Lenders (CML).
This matches November’s gross lending total, however, it is 49% higher than December 2012 (£11.4 billion) and the highest total for a December since 2007. This brings the estimated total for the year to £177 billion, up from £143 billion in 2012.
Gross lending for the fourth quarter of 2013 was therefore an estimated £52 billion. This represents a 5% increase on the third quarter of last year and a 38% increase on the fourth quarter of 2012 (£37 billion). This is the highest lending amount by quarter since quarter three of 2008.
Bob Pannell, the CML’s chief economist, said: “Short-term growth prospects for the housing market and the wider economy look very positive. Mortgage lending was stronger than we expected in the closing months of 2013, but lenders expect little if any boost to borrower demand this quarter.
“While some of these gains reflect government schemes, the rationale for the positive narrative is a much broader one, reflecting such factors as the improving economy and jobs market, consumer confidence and competitive mortgage deals.”
Mark Harris, chief executive of SPF Private Clients, added: “With gross mortgage lending at £17 billion, sustaining the momentum from November, we are seeing a revival in the mortgage industry. This isn’t just about the government schemes and initiatives for the housing market such as Help to Buy, but more about a broader economic picture of recovery and sustainable growth.
“The ‘feel-good’ factor is returning to the UK and home buyers are able to find the finance they need to buy the houses they want. There is a more balanced matching of mortgage demand and mortgage supply, as lenders are rising to the challenge of providing more choice and price points for a buoyant market.”
