A new analysis from a financial services trade body shows that gross mortgage lending is expected to rise significantly in the next two years, driven by increased activity in the housing market.
Earlier this week both The Property Franchise Group and the London-based Berkshire Hathaway HomeServices Kay & Co agency groups announced that they were diversifying into mortgage lending.
Their decision appears to tally with a report from the Intermediary Mortgage Lenders Association, anticipating that despite a fall in gross mortgage lending of 1.0 to 2.0 per cent in 2019, significant growth is expected in 2020 and 2021.
IMLA predicts that gross mortgage lending will grow by 1.4 per cent to £268 billion in 2020, rising to £275 billion in 2021.
This compares to an estimated £264 billion last year.
The reduction in economic and political uncertainty following the General Election is described as being the likely driver for more housing transactions, says IMLA.
Kate Davies, executive director of the Intermediary Mortgage Lenders Association, says: “The next two years certainly look positive for the mortgage market. In 2019 the sector remained resilient in the face of ongoing political uncertainty, but our report shows that a boost in consumer confidence is likely to support modest growth over the next two years.”
However, the report also states that there are a number of key challenges facing the mortgage market over the coming years. The growth of the sector will also partly rely on Britain’s ability to negotiate a trade deal with the EU after Brexit.
Estate Agent Today reported on The Property Franchise Group diversification into mortgage-lending earlier this week and now it’s been revealed that Connaught Private Finance is to be launched as a division of Berkshire Hathaway HomeServices Kay & Co, a London estate agent that is part of the Warren Buffett empire.
Connaught Private Finance is described as “a one-stop solution” for clients who want expert advice on all residential and buy-to-let mortgages, commercial, development, and bridging finance.