Mortgage lending in UK rises 15% year on year

london-houses-property-pr-008Lending for homes in the UK reached £22.5 billion in August, up 7% on the previous month and 15% year on year. According to the CML data, It is also the highest August figure since 2007 when gross lending reached over £33 billion.

Andrew McPhillips, chief economist at the Yorkshire Building Society, says: “The housing supply has recovered slightly after the spike in house purchases earlier in the year which was caused by landlords rushing to beat the introduction of the new stamp duty. There was expectation of growth in lending to vary in the coming months, as many buyers and sellers are likely to postpone getting on the property ladder due to uncertainty around factors such as the EU referendum. Despite this uncertainty in the medium term, house prices are likely to continue to rise as the housing shortfall remains a prevalent issue, which should drive growth in mortgage lending in the long term as people take out larger loans in order to buy a property.  To address this issue, there must be more supply and also consider introducing measures which would enable more people to afford a property.”

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