Strongest Gross Lending in five years

CML Gross Mortgage Lending

 

 

The Council of Mortgage Lenders Gross Lending report has seen the strongest performance in gross mortgage lending in five years.

The CML estimates that the total gross lending was up to £17.6 billion in October – a rise of 9% over the month and 37% in total over the year since October 2012. The last highest being in October 2008.

Commenting on market conditions in this months Market Commentary, CML chief economist Bob Pannell observes:

“Housing activity is set to strengthen further in the short-term, and to contribute materially to overall economic growth.

“Combined with the Bank of England’s recent optimism about the economy, this has led some commentators to speculate that an early rate rise may be on the cards. We do not currently share this view, which we believe underplays the importance that the MPC attaches to a secure recovery before raising rates.”

The CML going on to say that that once the UK 7% unemployment threshold is passed, they do not expect the Bank of England to  move quickly to raise interest rates. Indeed as they point out speaking in Cardiff a few weeks ago, the governor Mark Carney summed up the Bank’s mindset, saying that

“… we’re not going to look to tighten monetary policy until we see real traction and momentum in this recovery that has been sustained for some time”.

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