The Council of Mortgage Lenders has reported a 33.3% year on year jump in gross mortgage lending to January 2014.

This is a sign of both consumer and lender confidence.

Not only are lenders willing to lend more but there are now more lenders in the market than there were before the economic crash of 2008!

This much activity in the market is also a sign that house prices are likely to continue to rise.

The interesting trend to watch is that this growth is no longer contained in London and south east but we are seeing increased lending and increased house prices across the country.

The Bank of England has already taken action to slow market growth by removing Funding for Lending from the Mortgage Market.

If growth continues at a rapid pace we may see more decisions like this from the governor Mark Carney.

The controversial Help to Buy scheme could be downsized or even culled altogether if he feels the threat of a house price bubble is too great.

At the moment however there is no real concern about the rate of growth outside of London.

The shortage of housing is a real concern though and until this is addressed, the only way is up for house prices. Rent increases are also fast outstripping wage increases which really doesn’t help anyone who is trying to save for a deposit and get onto the housing ladder.

For those homeowners who are tempted to take advantage of rising prices by releasing equity, it is important to factor in the impact that an interest rate rise will have on your finances. Do not leave yourself exposed and always seek advice from an expert.