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Gross Mortgage Lending May 2010

There was some encouraging news from the Council of Mortgage Lenders (CML) today, as they announced mortgage lending for May rose to an estimated £11.3bn, an increase of 7% on April’s £10.5bn.

 

The figures were also 10% higher than the same period last year.  However, the CML have also warned that overall lending for 2010 may not hit their original estimate for gross mortgage lending of £150bn.

Paul Samter, CML economist, 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.  

"Financial sector regulation is a further source of uncertainty. The Chancellor has announced that the Bank of England is to take on regulatory responsibility for the banking system. As well as regulating individual firms, the Bank will have "macro prudential" powers and be accountable for the stability of the system as a whole. But it is not yet clear what levers it will have at its disposal to do so."

Source: CML

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