House purchase lending up 8 per cent in October

The total of 29,900 loans was up 8 per cent month-on-month and 3 per cent year-on-year.

Home movers took out 35,400 loans, up 9 per cent month-on-month and 3 per cent compared to October 2014.

In total, this was £7.1bn borrowed, up 8 per cent on September and 13 per cent year-on-year.

Home-owner remortgage activity also increased, up 6 per cent by volume and 10 per cent by value compared to September. Compared to October 2014, remortgage lending was up 19 per cent by volume and 34 per cent by value.

Gross buy-to-let saw month-on-month increases up 4 per cent by volume and 3 per cent by value, but more substantial growth year-on-year.

Paul Smee, director general of the CML, said: “Home owner and buy-to-let activity have both continued the upward trend seen last month, and the market looks set to finish the year strong, despite taking time to gain momentum after a slow start to 2015. With increasing employment and the current absence of inflationary pressures in the UK, conditions for continuing demand in the housing market seem likely going into the new year. How supply will respond to this challenge going forward is a crucial question for 2016.”

The Office for National Statistics (ONS) said today that UK house prices continued to grow strongly in October.