Council of Mortgage Lenders Housing Market Commentary

Housing and mortgage market sentiment has improved a little over recent weeks. Over the short-term, activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends on 24 March.

For the time being at least, funding conditions have eased as a result of European Central Bank operations, so lessening the need for UK banks to tighten mortgage pricing and terms.As inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half.

The CML estimate that total gross mortgage lending was £10.5 billion in January. Although weaker than in December because of seasonal factors, this would be 10% higher than a year ago and the sixth month in a row of higher year-on-year lending.

December’s approvals data from the Bank of England suggests that the profile of January’s lending continued to be one of resilient house purchase demand alongside a levelling-off in remortgage activity.

Buy-to-let has also put in a more robust performance over recent quarters, slowly recovering its share of total gross lending. While much of this reflects greater remortgage business, landlords also bought more properties during the second half.

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