The number of loans for house purchase in Scotland increased by 24 per cent in Q4 2013 compared to the same period in 2012, according to the Council of Mortgage Lenders (CML).
The increase puts lending for house purchase at its highest level since mid-2008.
The figures show that:
- The value of loans increased by 30 per cent in Q4 2013 compared to Q4 2012
- Overall in 2013, the number of loans was up 15 per cent compared to 2012
- The total value of loans in 2013 was £6.5 billion, an increase of 19 per cent compared to 2012
- There were 6,700 loans to first-time buyers in Q4 2013, up 26 per cent on Q4 2012
- Home-movers took out £1.2bn worth of loans in Q4 2013, up 26 per cent on Q4 2012.
Iain Malloch, chair of CML Scotland, said:
“The strong upward trend in lending seen in 2013 gives grounds for optimism, suggesting that improved mortgage availability and economic recovery are creating greater activity in the Scottish housing market. First-time buyers have been a crucial driver throughout 2013, and the CML anticipates this growth in the market will continue into 2014.”
Philip Hogg, chief executive of the industry body Homes for Scotland, said:
“With both consumer and business confidence growing, our members now look forward to translating this upturn in market demand into the building of much needed new homes, creating jobs and stimulating economic growth.
“However, this will necessitate major supply-side challenges such as improved access to development finance at affordable rates, increased land supply and skills and material shortages to be addressed if output is to increase to the levels required to meet housing need.”