Lending is Back With Two Year Record Growth

A boom in mortgage lending in the UK shows that there is hope for the market in what was thought to be a failing location. As housing prices stabilized, then dropped, the market gained strength while those that had waited to buy began scooping up properties. Lending increased by more than 5.4 billion pounds in March, up from a 4.7 billion gain in February, and making it the strongest month in more than two years. In June of 2004, the British housing market was at its peak of a 5.2 billion pound one-month increase.

Though prices have stabilized, borrowers have seen that prices are not going to burst, and are starting to venture back into the market. Combined with lower property prices, this has created a boom for lenders. The personal lending market, though, took a hit in March, with personal loans and credit card lending falling to 400 million pounds. The give and take in lending shows that consumers are comfortable with the present housing market.