According to figures released by the UK Council of Mortgage Lenders, gross lending in November soared to an all-time high of GBP33.1 billion, 9% higher than October's GBP30.5 billion and 19% higher than the GBP27.7 billion for November 2005.
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.