Mortgage lending in the United Kingdom rise by 15% for the month of June according to new data published by the Council of Mortgage Lenders (CML).
Gross lending totals (which includes home buyers and remortgages), rose to £13.1 billion which is a 15% increase on May’s figure, making it the largest monthly figure so far this year.
This new rise in mortgage lending has prompted suggestions of improved economic growth, but experts warn that this rise is purely a seasonal shift and cannot be sustained for the long term.
The upcoming cuts in the public sector along with the increase in VAT to 20%, additional tax rises and a potential freeze on wage increase are all expected to have a negative effect on the housing market.
Paul Samter, economist at CML, says: “There are signs of house prices stabilising and more properties coming on to the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.”
