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Mortgage lending nears record level
20/12/2005 14:43:00
Mortgage lending increased by five per cent in November to reach its second highest level ever, according to the Council of Mortgage Lenders (CML).
Gross lending reached £28.5 billion, just £0.4 billion short of the record month, July 2004.
It represents a 30 per cent rise from the £21.7 billion witnessed during November 2004 and was at odds with the normal trend of a slow down in activity as the years draws to a close.
CML director general, Michael Coogan, said: "The housing and mortgage markets have clearly strengthened significantly from the lows of a year ago.
"While it could be tempting to assume this strengthening will continue, our expectation for the coming year is of relatively subdued transactions levels, mortgage lending moderating a little from recent levels, and house prices rising by about two per cent.
"Affordability pressures will persist for first-time buyers and aspirational house-moving is likely to appear unattractive compared to home improvement."
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