Gross mortgage lending hit an all time record of £33.1b in November according to the latest data from the Council of Mortgage Lenders (CML). Lending was 9% higher than the October figure of £30.5b and 19% higher than the £27.7b of lending in November last year. It was 0.2% higher than the previous record set in August of £33b.
The strength of lending has been fuelled by the number of households growing more quickly than the supply of available housing. This has pushed up annual house price growth to nearly 10% in the final quarter of this year, compared to between 3% and 5% at the beginning of the year. Strong growth in the London housing market coupled with robust buy-to-let demand have also contributed to November's record lending figure.
CML Director General Michael Coogan said: "The housing market is undoubtedly in robust shape as we move towards the New Year. Not only is today's lending figure the highest ever, our recently published forecasts suggests lending will beat our previous predictions for the coming two years. Looking ahead, mortgage lending looks set to remain seasonally strong over the winter months, reflecting a continuing high level of transactions and house price growth. As for 2007 as a whole, we expect to see gross lending total around £360b - another record breaking year."
