The mortgage market passed a major milestone in November with the number of new loans topping 70,000 for the first time since January 2008.
Industry experts welcomed this latest confirmation of the strength of the market, and said the success story should continue in 2014.
There were 70,758 loan approvals for house purchase in November, according to Bank of England figures, up from an average of 62,999 over the previous six months.
Richard Sexton, director of e.surv chartered surveyors, said: "November marked a new milestone in lending. House purchase lending has now increased for nine months straight, and has grown by one-third over the last year.
"This will bolster confidence among banks and buyers that the mortgage market is truly back on track.
“Lending should continue increasing in 2014, to solidify the recovery. But there is still a way to go – with lending still 40% lower than its pre-crisis peak."
The shortage of new homes will continue to push up prices, Sexton warned. "More people can access the finance to allow them to move house or get on the ladder, but there aren’t enough properties to go around, which is forcing prices skywards at a rapid rate. Homebuilding needs to play catch-up with home lending in the year ahead.”
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said recent strong growth should continue in 2014. “The market looks set to continue its upward trajectory this year even with the Funding for Lending Scheme (FLS) stimulus coming to an end.
"More lenders are engaging with Help to Buy, and even those who don’t can benefit from improved funding markets and an increased appetite for high loan-to-value loans.
“As the market continues to improve, it’s important that buyers are not priced out of the market. However, the decision to remove the FLS demonstrates an ongoing commitment to monitoring house price growth so that growth is measured rather than meteoric.
"The move positions the Bank of England firmly on the side of borrowers, and close supervision should ensure a fair and affordable housing market for consumers in 2014.”
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