Building society gross advances rose to 4,214 million in February 2007 the BSA reported, up from the £3,183 million seen in February 2006.
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Net advances almost doubled between February 2006 and 2007, rising from £629 million to £1,292 million. Approvals reached £4,917 million, compared to the February 2006 figure of £3,646 million.
Adrian Coles, director-general at the BSA, said: “Building societies saw record lending in February, with gross lending the highest ever for that month. Approvals were also the highest February on record.”
However he warned: “These are strong figures, but we may be seeing the peak of the market. Figures may become more subdued as the year progresses.”
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In its own assessment of the market, the CML revealed a drop between the January and February lending figures. The CML indicated that lending dropped 7 per cent from January, but had risen by 9 per cent over the previous year’s findings.
Michael Coogan, director-general at the CML, said: “This is the highest February lending figure on record, and reflects the continuing strength of the market and the strong desire of many people to get a foot on the property ladder or move house. Recent speculation about whether or not interest rates will go up seems to have had little impact upon lending levels and we still expect gross lending to reach around £360 billion this year.”
