Gross mortgage lending increased month-on-month by 7% in May, reaching an estimated £11.3 billion, according to new data from the Council of Mortgage Lenders (CML) . This was up 10% from £10.2 billion in May 2009.
The CML has warned that gross lending may marginally undershoot its existing forecast of £150 billion for 2010.
CML economist Paul Samter said: “The ground has been cleared for next week’s Budget to be the start of an austerity drive to get the public finances onto a more sustainable footing. We do not expect it to include housing and mortgage specific direct tax measures. But the market will inevitably be affected by how policy impacts on the wider economy – particularly on household finances and confidence.
