This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
There was a significant rise in gross lending in June, according to a new report.
Data from research compiled by the Council of Mortgage Lenders showed that total lending rose by 29% in comparison to May to an estimated £20.5bn.[1]
The report showed that year-on-year figures were also up, by 15% on the total of £17.8bn lent in June of 2014.[1]
Rises
In addition, total gross lending in the second quarter of 2015 amounted to £52.2bn, which signified a 17% increase on the £44.5bn recorded in the first three months of the year. This also represented a slight increase of 1% on the same period last year, where gross lending totalled £51.7bn.[1]
‘Activity is picking up after a slow start to the year,’ observed Mohammed Jamei, economist at the Council of Mortgage Lenders. ‘Our lending figure for June may be flattered by the end of political uncertainties related to May’s general election and the underlying picture is likely to be one of only modest recovery. This should be supported by favourable conditions in the economy, though it will be limited by rising house prices and affordability pressures.’[1]
Gross lending up by 29% in June
Less uncertainty
Richard Pike, Phoebus Software sales and marketing director stated that, ‘as predicted activity in June was more brisk than in the previous few months, which seems to confirm that the much talked about uncertainty around the general election had a real impact.’ However, he went on to say that, ‘with less uncertainty and a more stable political picture, I expect the market to continue to improve.’[1]
Although the Governor of the Bank of England yesterday warned that interest rate rises are coming closer, most believe this will still not happen until 2016, and any rise is likely to be small which means we still have very competitive rates and products for the foreseeable. This should help the health of the whole of market, especially the remortgage sector which is still subdued,’ Pike concluded.[1]
[1] http://www.propertyreporter.co.uk/finance/gross-lending-sees-29-rise-in-june.html
