The Council of Mortgage Lenders has released the latest data on lending activity for 2016 and it is evident that the UK property market continues to remain strong and resilient.
The figures reveal that the gross mortgage lending reached a high of £246 billion during 2016, registering a 12 per cent increase over 2015 (£220 billion). This is the highest gross lending activity since 2008 and the appetite for UK properties among investors is still high.
During the last quarter of 2016 (Oct-Dec), the gross lending was £62 billion while in December alone the gross lending was £20 billion. The data shows that the UK housing market is on the growth curve despite the setbacks in mid-2016 owing to political developments.
The data released by this Council is authentic and reflects the UK housing market sentiments. The Council of Mortgage Lenders' comprise banks, building societies and other lenders as members, who together undertake around 97 per cent of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion.
The findings provide a clear view of the direction in which the UK property market is headed. The same trend is likely to continue into 2017, as the demand for quality residential homes is on the rise.
The UK housing market, much like the wider UK economy, ended 2016 on a generally positive note. Approvals for house purchase have recovered strongly of late, and this should feed through to lending figures in the early months of 2017, said CML senior economist Mohammad Jamei.