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UK housing market activity sees ‘gentle rise’

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Mortgage experts are predicting a “gentle recovery” in activity in the UK housing market as new figures show lending rose slightly.

Gross mortgage lending rose by 2% in May compared with April to £16.2bn, according to the Council of Mortgage Lenders (CML).

This, and economic indicators, signalled a “limited” increase in activity in the coming months, it said.

However, it pointed out that lending was 3% lower than in May last year.

Mortgage rates are currently at very low levels as lenders aim to entice buyers to enter the market.

But brokers say there remains a shortage of properties being put on the market.

“The gap between what people earn and what they can afford to buy continues to be an issue. There is little incentive to sell when there is a lack of choice as to what to buy,” said Jonathan Harris, director of mortgage broker Anderson Harris.

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