Gross mortgage lending for the month of October reached £30.3 billion, which is a four per cent increase on September’s total.
According to new statistics from the Council of Mortgage Lenders (CML), lending in October of this year has risen 12 per cent when compared to that of the same month last year.
CML director general Michael Coogan has commented that demand and approvals for mortgages have been “strong” over recent months and the housing market is “robust”.
Although he added that the CML forecasts high levels of lending until early next year, the recent rise in interest rates could cause a “modest slow down” as the year progresses.
Furthermore, the Royal Institution of Chartered Surveyors (RICS) remarked that the level of mortgage lending pointed to a “resilient housing market” and agreed that the sector could see a slowdown in 2007.
But Milan Khatri, RICS’ chief economist, added that first-time buyers may still find themselves financially stretched despite the anticipated slowdown in house prices.
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