Gross lending hit a new monthly record in October of £30.3bn, according to the Council of Mortgage Lenders (CML).

CML reveals that lending was up by 4% on the September figure of £29.2bn, but down by 8% from the overall record of £33bn in August. Lending was up 12% in
comparison to October last year (£27bn).
Michael Coogan of CML said: "For yet another month the housing market is proving itself to be in robust shape. Housing demand and mortgage approvals have been strong over recent months, despite the rise in interest rates. House price growth is also
strong, so we expect to see lending remaining at high levels through the new year.

"But with interest rates rising for the second time in three months, we
anticipate a modest slowdown in house sales and mortgage approvals as 2007
progresses."