UK Finance estimates that gross mortgage lending reached £22.1bn in June, 9 per cent more than May’s lending total of £20.3bn.
Last month’s lending was 3 per cent greater than the £21.5bn lent in June last year.
Gross mortgage lending for the second quarter of 2017 was therefore an estimated £60.3bn.
This is a 3 per cent increase on the first quarter of this year and a 6 per cent increase on the £57.1bn lent in the second quarter of 2016.
Gross mortgage lending, not seasonally adjusted
Total
£m
Year
2006 340,931
2007 356,802
2008 247,805
2009 140,573
2010 133,807
2011 138,257
2012 144,512
2013 177,715
2014 203,384
2015 221,778
2016 245,141
Jeremy Duncombe, director of Legal & General Mortgage Club, said the figures showed that gross mortgage lending remained strong in June, despite the political rumblings.
However, he said the issue of long-term affordability persists.
Mr Duncombe said: “With average house prices now six times higher than the average salary, and up to 11 times more in London, many want-to-be homeowners are unable to get on the housing ladder.
“A recent study by Nationwide Building Society showed buyers could borrow up to £11,500 more if energy efficiency ratings were to be factored into lending criteria, and it is these types of initiatives that need to be considered as part of the solution.
“If buyers can responsibly borrow enough to keep up with price inflation, rather than waiting potentially years longer to save for a deposit, it will give them a greater chance of finally getting onto the increasingly illusive property ladder.”
UK Finance senior economist Mohammad Jamei said looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.
emma.hughes@ft.com
