There have been more encouraging signs of renewed confidence in the UK housing market , with figures for last month showing mortgage lending was at its highest for five years.
The Council of Mortgage Lenders revealed lending rose to more than £16 billion in July - up 12 percent on the previous month.
Consumer Editor Chris Choi reports:
The mortgage figures released today, which showed that lenders enjoyed their strongest month since October 2008, are the latest numbers that point to a housing market revival.
- Last week, a report by the Council of Mortgage Lenders showed that first-time buyers have risen to the highest levels since 2007.
- House prices are rising at their fastest rate since 2006, according to the Royal Institution of Chartered Surveyors.
- Asking prices on flats have also reached an all-time high, property search website Rightmove reported yesterday.
- They also found that prices in London are up by 10% compared with a year ago as confidence flows back into the market.
– Caroline Purdey, Council of Mortgage Lenders market and data analyst
An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.
Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.
Read: Gross mortgage lending increases 29% since July 2012
The total gross mortgage lending in July increased to £16.6 billion - a rise of 12% from the previous month, according to figures released by the Council of Mortgage Lenders.
The figures also represent a 29% increase from July last year and is the highest monthly estimate since October 2008.