CML: Strongest property purchase performance in five yrs

Gross mortgage lending held steady in September at estimated £16.2bn, compared to August’s gross lending total of £16.4bn but was 41 per cent more than September last year (£11.5 bn), according to the Council of Mortgage Lenders.

Gross lending for the third quarter of 2013 was an estimated £49.3bn.

This represented a 17.6 per cent increase on the second quarter of 2013 and a 32 per cent increase on the third quarter of last year.

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This was the highest lending amount by quarter since the third quarter of 2008.

Bob Pannell, chief economist of the CML, said: “Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.

“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy.

“For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”