The latest figures show that gross mortgage lending in the UK reached £20 billion in September this year, which is a 2% increase from the previous month and a 12% year on year rise. The report from the Council of Mortgage Lenders shows September to be the fourth consecutive month in which the market has seen a sharp improvement in year on year lending.
The third quarter of 2015 saw gross lending to be at an estimated £61.4 billion which is an 18% increase from the £52.2 billion advanced in the second quarter and a hike of 12% from the total lending figure of 2015 which stood at £55 billion.
Mortgage lending is now experiencing its healthiest spell in 7 years, with predictions of a slow start to the year and improvement in the second and third quarter proving accurate. There are numerous factors contributing to the growth in property demand including low inflation rates, salary growth, reduced unemployment and highly competitive mortgage deals. Industry experts have predicted even further growth as we approach the end of the year.
The house purchase lending market and the booming buy to let market have both sustained momentum, giving first time investors and buy to let landlords ample opportunity to seize lucrative investment opportunities. Recent speculation of rises in interest rates has subsided and with any increases not likely to emerge until 2016 consumers are in a prime position to benefit. The attractive rates available are sure to be around for longer and continue to support buyer demand. September also saw house prices grow at their slowest rate and if this trend continues affordability for buyers will continue to ease.
Investing in the current London buy to let market offers great potential for attractive returns. Strong demand from growing numbers of renters, the rejuvenation of boroughs across the capital and the impending introduction of the new high capacity railway Crossrail are driving the influx of buy to let investments throughout the city.
We specialise in helping our investors and landlords find the best possible investment opportunities available and ensuring successful, stress free and lucrative tenancies. We are the preferred lettings agent in Tower Hamlets and all other areas of the capital, and we are on hand to provide premier property management services to each of our clients. Just get in touch if you would like to find out more.