Gross mortgage lending in the UK was robust at the close of the 2012 and reached an estimated £11.7 billion, according to new research.
Data released by the Council of Mortgage Lenders (CML) revealed the estimated total for the year was £143 billion, up from £141 billion in 2011, while in 2013 this figure could stretch to £156 billion.
Bob Pannell, chief economist at the CML, stated the body is “more positive” about Britain’s housing industry than it was a year ago, despite reports of financial headwinds and downside risks.
“House purchase activity was robust in the fourth quarter on the back of better mortgage availability and pricing and we expect this to continue over the coming months,” he added.
Such a lift in the mortgage market can be explained by the government’s Funding for Lending scheme – which was introduced at the start of August 2012 – and the fact the Bank of England has been offering cheap funding to banks and building societies.
This follows the news Lloyds Banking Group is investing £6.5 billion in helping first-time buyers to get on the housing ladder by the end of 2013.
