The amount of money lent to homebuyers has grown 23 per cent since last November, the Council of Mortgage Lenders (CML) has revealed.
More people could be considering installing Cheshire conservatories to their new homes, having been lent the money needed to buy their dream property, after mortgage lending reached £19.9 billion last month.
Commenting on the findings, CML economist Mohammad Jamei said home lending picked up the pace over the summer months, resulting in a much higher level than at the beginning of 2015.
“Lending continues to be supported by strong fundamentals, which are low inflation, strong wage growth, an improving labour market and competitive mortgage deals,” Mr Jamei stated.
The latest results take the number of home loans in the UK to 11.1 million, which amounts to £1.3 trillion in total.
Mr Jamei added that CML estimates lending in 2015 to reach £214 billion, above the previous £209 billion prediction.
Mortgage lending might be on the rise as the result of increasing house prices, after Halifax recently revealed property values rose by 1.4 per cent in the three months leading to November.
Indeed, Mr Jamei recognises 2016’s mortgage potentials are “limited” due to issues regarding affordability and a lack of supply. As a result of demand continuing to rise above the supply of available houses to buy, prices are constantly increasing, resulting in some people being priced out of the property market.
Martin Ellis, housing economist at Halifax, echoed these thoughts, saying low supply will put an “upward pressure on house prices” next year.
Its latest figures meant the average price of a UK property was £204,552 last month, £16,000 more than in November 2014.
