Gross mortgage lending has continued to improve slightly, totalling around £16 billion in July, a 26% increase from £12.7 billion in June, according to new figures from the Council of Mortgage Lenders..
However, this figure is still down 36% from £24.9 billion in July 2008. It is also the lowest July lending figure since 2001 and £11 billion lower than the July average over the previous seven years of £27 billion.
The trade body says that these volumes remain consistent with its forecast for £145 billion in gross mortgage lending for 2009.
CML economist Paul Samter said: “Most of the indices point to house prices rising modestly over the summer months. The CML’s July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals.