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Secured lending at record high

Lending on property in May hit the highest levels since records began , according to the latest statistics from the Building Societies’ Association. Gross advances hit £4,613 million in May 2006, compared to £3,528 million in May 2005. Approvals were also up in May 2006 – reaching a record £5,454 million compared with £3,836 million in May 2005. Adrian Coles, director general of the BSA, said the market last month was exceptionally strong, with total lending the highest May figure since records began in 1987. He added: “It seems this trend is likely to continue, as the approval figures give a good indication of business in the pipeline. “It is reasonable to assume the housing market will be buoyant going into the summer but it has been widely predicted that the market will show signs of cooling, but this is not likely to happen until the autumn.”

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