The CMLs recent market commentary has reported that Gross mortage lending is up by a substantial 24% in April, up from £9.9 billion to £12.2 billion. Over the year from May 2011 this represents a 13% rise from £10.8 billion.

The CMLs recent market commentary has reported that Gross mortage lending is up by a substantial 24% in April, up from £9.9 billion to £12.2 billion. Over the year from May 2011 this represents a 13% rise from £10.8 billion.

Although on the surface this is an amazing increase, and potentially quite positive, when put along side last months announcements, a 19% fall, it is potentially just more of a correction in the market after the impact of the stamp duty holiday ending.

This confirm the key headline items that CML reports:

  • Mortgage lending and housing transactions have see-sawed in recent months, but the underlying position appears to be broadly flat.
  • The government has responded to ongoing Eurozone concerns by heralding a “funding for lending“ initiative that is likely to feature housing. Details are expected shortly.
  • Meanwhile, the Bank of England has signalled that it will provide UK banks with unlimited liquidity if a full-blown Eurozone crisis hits

As they indicate the market in broadly falt – a view shared across the various House Price Indices. However when looking at the seasonally adjusted property transactions, these are above the levels a year previous – and have been so since November.

In general then the mhousing market has performed reasonably strongly.

In the CML market commentary, CML chief economist Bob Pannell comments:

“The government has recently announced a number of measures to counter the adverse effects from the Eurozone crisis. It clearly senses an opportunity to bolster home ownership and housing activity, and we look forward to hearing more details about the “funding for lending” initiative which seeks to deliver this.