Mortgage lending in the UK mounted in August, hitting its highest level for the month since before the financial meltdown.
The figures indicate that the British housing market has remained resilient despite the Brexit vote.
A total of £22.5bn was advanced during August, according to the Council of Mortgage Lenders (CML) which said this was 7% greater than in July and up 15% compared to last August.
The figure includes lending for remortgaging and house purchases by buy-to-let landlords as well as owner-occupiers, and does not take into account repayments as borrowers switch.
It is likely also to include mortgages arranged before and after the referendum because the monthly figure represents the point at which the funds become available to the borrower.
The CML said the figure was the highest August total since 2007, when gross lending reached £33.6bn.
The cut in interest rates to the new low of 0.25% has brought about a reduction in mortgage rates charged by banks and building societies.
CML’s senior economist, Mohammad Jamei, said the move by the Bank of England was likely to have helped movement in the property market.
He said: “A subsequent uptick in [mortgage] approvals is anticipated, albeit at levels lower than earlier this year as affordability constraints and lack of properties for sale continue to bear down on borrowers.”
After a sharp fall immediately after the Brexit outcome, confidence in the property market has begun to strengthen, according to the Royal Institution of Chartered Surveyors (Rics). It noted, however, that there is a shortage of property for sale.
The market has benefitted from high employment, reasonable purchasing power and low market rates. The shortage of properties has helped maintain house prices.
