Gross mortgage lending in December last was close to 50 per cent higher than the same month in 2012.
The figure for December 2013, revealed by the Council of Mortgage Lenders (CML,) was an estimated £17 billion, equal to November’s gross lending total but up 49 per cent on the £11.4 billion recorded for the same month the previous year and the highest level since December 2007.
The total figure for the year 2013 is now estimated to be £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 per cent increase on the third quarter of last year and a 38 per cent increase on the fourth quarter of 2012 (£37 billion). This is the highest lending amount by quarter since quarter three of 2008.
Commenting on the figures, CML chief economist Bob Pannell observes: “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”.
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