“Mortgage lending activity continued to strengthen with February’s 43% annual increase following hot on the heels of January’s 33% yearly rise. We may not see such significant year-on-year growth as 2014 progresses, partly because regulatory changes on 26 April will act as a temporary buffer and also because the bar was significantly raised in the second half of last year. But the recovery is well underway and should continue to strengthen¹ as the wider economic outlook improves.
“Budget measures to boost the construction of new homes will help to balance supply and demand in the property market, while the extension of Help to Buy equity loans also reduces fears of a drop-off in activity after 2016. The government continues to call on extraordinary measures and new stimuli to progress the housing and mortgage market recovery. Its commitment is paying off, but we need to stay focused and monitor the consequences so we are left with a self-sustaining market when such schemes are eventually phased out.
¹ IMLA’s report on mortgage lending in 2014/15 – What is the new ‘normal’ — Mortgage lending in 2014–15 and the march back to a sustainable market – forecasts:
- the strengthening recovery will see annual mortgage lending reach £215bn in 2014 and £240bn in 2015 – still leaving the market 47% below its 2007 peak in real terms
- a long term, sustainable recovery is possible beyond 2017, backed by pent-up demand from first time buyers, improving funding markets and the likelihood of low interest rates continuing
- the full scale of future growth will be impacted by the unwinding of special measures such as Help to Buy and quantitative easing; efforts to address ‘woefully inadequate’ housing supply; and the impact of the new ‘triple lock’ of regulation.
A full copy of the report is available upon request.
For further information please contact:
Andy Lane / Ludo Baynham-Herd, The Wriglesworth Consultancy
Tel: 0207 427 1422 / 29 / imla@wriglesworth.com
Notes to Editors
About IMLA
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 52 banks, building societies and specialist lenders include 18 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (91.6% of balances and 92.8% of gross lending).
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