Gross mortgage lending up 6% in February

| March 18, 2010
”Gross

The Council of Mortgage Lenders (CML) is expecting “further modest volatility” in the UK housing market in the coming months.

The comment came as the body revealed a 6% rise in gross mortgage lending in February (to £9.2 billion) compared with January.

Given that the end of the stamp duty holiday distorted lending figures considerably in both December and January, the CML says the increase “is unusual but unsurprising”.

February’s gross lending was down 6% on a year earlier, although the first two months of this year are broadly in line with the CML’s forecast for lending of £150 billion for 2010 as a whole.

Looking to the future, CML economist, Paul Samter, points out that the funding markets remain difficult and likely limit the flow of available housing finance.

He adds: “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.”

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