Mortgage lending in the United Kingdom increased notably in the month of May as the effect of the government's funding for lending scheme started to feed through, data from a survey by the Council of Mortgage Lenders (CML) showed Thursday.
The CML has estimated that total gross mortgage lending in the UK property market increased to 21 percent sequentially to GBP 14.7 billion in May. This is the highest monthly estimate for mortgage lending since October 2008.
Compared to last year, total mortgage lending advanced 17 percent during May, the agency said.
"Funding conditions, helped by the funding for lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability and a gradual resumption of lenders' risk appetite," CML chief economist Bob Pannell said.
This month, a survey by property management firm Rightmove showed that asking price for a property in the UK rose to a fresh record high in June, lifted by a jump in prices in the South East and London.
Rightmove said that higher confidence, lower mortgage rates and inflation-eroded prices encouraged more housing market activity.
The BoE launched FLS in July 2012, offering funding to banks and building societies for boosting their lending to the real economy. The Help to Buy scheme is a new government-backed initiative with an aim to help buyers purchase property without large deposits.
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