Further evidence of the buoyant housing market at the end of 2006 and start of 2007 has come as the Council of Mortgage Lenders (CML) release their mortgage lending figures for January.
The latest data shows that January's lending amount, at £26.8 billion, is the highest figure on record for that month – a whopping increase of 13 per cent from the same period last year.
Announcing its decision, CML suggested that such high figures can be expected to continue in the next few months but may slow as the impact of three recent rate rises finally transfers onto the property market.
"Mortgage lending kicked off 2007 in robust shape and we expect this strength to continue over the next few months. Quite how strong it will be later in the year depends on what happens to interest rates," commented CML director general Michael Coogan.
"While we avoided a rate rise earlier this month, the markets are still expecting at least one more quarter point rise by the middle of the year. And, because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision to move."
250,000 new houses are expected for completion this year as the government and industry struggles to keep up with demand for affordable housing.
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