Fuelled by a buoyant housing market, mortgage lending reached record levels in 2001, according to the Council of Mortgage Lenders' annual report, published yesterday.

It reveals that gross advances rose by 34% to £161 billion, and net lending increased by 32% to £55 billion. More than 11 million mortgages, amounting to over £600 billion in value, are now held by customers of CML members, and owner-occupation is now a reality for two-thirds of households in the UK.

The annual report also highlights:

• The CML's success in persuading the Treasury to re-consider its proposals for the statutory regulation of mortgages. A better framework is now proposed for regulation and the CML will continue to press for a final set of mortgage rules that help sustain customer confidence, without placing an unnecessary burden on the industry and consumers.
• Continuing progress in the CML's drive to make home-ownership sustainable for all borrowers. Sales of mortgage payment protection insurance continued to rise in 2001, while the CML began a comprehensive review to identify what else is required from the Government, lenders and insurers to develop the sustainable home-ownership initiative.
• The contribution made by lenders and other property market professionals to speeding the home-buying process and ensuring that it operates more smoothly. The CML is currently researching how developments like quicker mortgage application procedures, centralised conveyancing, and on-line searches and valuation reports are continuing to improve the process.
• Progress made by the CML in promoting new areas of business - including equity release and buy-to-let - in a manner that sustains a positive image for the industry.
• Measures to ensure that new and existing mortgaged property continues to offer good security, both now and in the future. The CML contributed to the development of new techniques for managing risk and worked to remove barriers to the development of new methods of mortgage funding, administration and distribution.
• The role of the CML in promoting housing policy that recognises the importance, and encourages the promotion, of privately financed housing.
• The provision of data, research, analysis and comment to reinforce the CML's role as the authoritative and collective voice of the UK mortgage lending industry.

Commenting on the publication of the CML's annual report for 2001, its Director General Michael Coogan said: "The CML continues to work for an operating environment in which the mortgage industry can flourish. Much has been achieved but there is still more to do to ensure that the mortgage and housing markets continue to prosper and are sustainable in the future for the industry and its customers."