The increase in lending was boosted by the growing number of households and the gradual decline in availability of housing, the Council of Mortgage Lenders (CML) said.
As a result, house prices have been pushed through the roof, growing nearly 10% in the final quarter of 2006, in comparison to between 3% and 5% at the start of the year. A strong growth in the London housing market, coupled with robust buy-to-let demand, has also contributed to November’s record lending figure.
CML director general Michael Coogan said: 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 GBP360 billion – another record-breaking year.
