Total net lending rises

Published: April 02, 2008

Total net lending rose in February, according to figures from the Bank of England.

A total of £9.8 billion was lent, above the £8.3 billion lent in January and the £9.4 billion six-month average.

The value of loans approved for house purchase remained stable, at £10.2 billion, although the actual number of loans fell slightly.

Global Insight economist Howard Archer said that the UK mortgage and housing markets are likely to be OK due to a number of contributing factors.

"The downside for house prices will be limited by an easing of the credit crunch over the coming months, further gradual but steady interest rate cuts by the Bank of England, a significant shortage of supply in some regions, high employment, the rising number of households and the fact that few vendors are currently having to sell for 'distressed' reasons," he said.

"Much will also clearly depend on just how deep and long the UK economic downturn is," added MrArcher.

The Land Registry recently revealed that house prices stabilised in February.