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Mortgage experts have shrugged off April's lending slowdown and predict a boom in the second half of the year.

Even new figures showing a surge in house building will do little to reverse the shortage of property supply and rein in prices, they say.

Total gross lending in April fell 1% to £16 billion, according to the Council of Mortgage Lenders, a drop of 4% year-on-year.

CML economist Mohammad Jamei said this followed a stronger March and predicted that the UK was "on the cusp of a modest lending recovery".

"Household finances are generally improving as earnings growth continues to outstrip inflation, and mortgages are being offered at extremely competitive rates.

"As a result, we expect to see stronger lending in future months."

Paul Smith, chief executive of haart estate agent, said: "The mortgage market is in rude health and despite the doom and gloom in the election run-up, consumers were apparently undeterred by the prevailing uncertainty.

"Mortgage lending is still down on April 2014 but that was an exceptional year where property prices and demand were speeding along beyond all expectation and an application of the brakes is no bad thing."

"We expect mortgage lending to be on an upward trajectory for the rest of this year."

Andy Knee, chief executive of LMS, said the year-on-year comparison did not paint the full picture. "The introduction of MMR in April 2015 saw a very active lending period from January to April when borrowers were trying to rush through transactions ahead of its implementation.

"In reality, we're confident that year-on-year comparisons will become positive from May onwards, when lending last year was subdued by MMR."

Knee said the market will also be buoyed by competitive mortgage rates, lower prices greater household incomes and post-election confidence.

David Copland, TMA director, was also bullish. "Anecdotal evidence that estate agents are getting busy, and the signal from the Bank of England that rates will rise in 2016 may galvanise existing homeowners to consider remortgaging. 2015 has every chance of exceeding the £205 billion of lending seen in 2014."

The latest housebuilding statistics from the Department for Communities and Local Government showed work started on 140,500 homes in the year to March, up 5% year-on-year.

Over 40,000 homes were started between January and March this year, 31% higher than the previous quarter and 136% higher than in 2009.

It means housing starts are now at their highest level since 2007.

Andy Frankish, new build director at Mortgage Advice Bureau (MAB), said the figures made encouraging reading. "This is hopefully the beginning of a sustained period of growth for UK housebuilding."

Jeremy Duncombe, director, Legal & General Mortgage Club, said there is still a significant gap between the number of houses being built and the number that are needed.

"A lack of homes means that prices are pushed up, stopping many people from realising their goal of homeownership. The UK needs 250,000 new houses each year to meet demand and enable the market to grow in a more sustainable way."

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