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Fifth of brokers think gross lending will be more than £251bn

  • 11/04/2024
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Fifth of brokers think gross lending will be more than £251bn
Around one in five advisers believe gross lending will surpass £251bn in 2024, indicating a more cautious optimism about the market.

According to a TMA Club survey, a further three in five believe gross lending will be between £220bn and £250bn.

UK Finance figures last year showed that gross lending came to £226bn, which is 28% down on the prior year figures.

The trade body forecast a further fall this year, with gross lending coming to £215bn.

Lisa Martin, TMA’s development director, said: “Inflation fears are receding faster than the Bank of England had been expecting, and the latest indications from the governor Andrew Bailey suggest we may see a base rate cut later in the year.

“That shift in the first three months of this year has boosted borrower confidence, and advisers are seeing more engagement.

“There are still affordability pressures, but lenders are definitely pricing to take market share and that’s keeping activity up.”

The survey also found that brokers were underwhelmed by the Spring Budget, with around 95% saying that nothing announced would help borrower affordability, and those remortgaging this year would face the same challenges.

Brokers suggested that stronger lending was likely to come from the purchase side of the market.

Martin continued: “There is evidence that the housing market is back on track and brokers are seeing a rise in the number of clients looking to purchase, while remortgage activity remains steady.”

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