One in five TMA brokers believes gross lending in 2024 will be over £251bn

More than 80% of TMA Club’s mortgage brokers predicted an increase in mortgage lending in 2024 compared to official forecasts.

Gross lending fell by 28% to £226bn last year as borrowers tightened their belts amid rapidly rising living costs.

However, as part of a recent poll undertaken by TMA Club at a recent event, one in five brokers believed gross lending in 2024 will be over £251bn.

A further three in five expected gross lending this year to be between £220bn and £250bn.

Lisa Martin (pictured), 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.”

Brokers also reported that they were underwhelmed by the Spring Budget, with 95% of those polled by TMA stating that nothing announced would ease borrower affordability.

The majority of brokers also suggested that stronger lending is likely to come from the purchase side of the market.

In February property listings website Zoopla reported 15% more property sales than this time last year.

Buyer demand was 11% higher than a year ago and there were 21% more homes for sale.

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.”