Council of Mortgage Lenders says gross lending declined to £17.7bn in September, the lowest figure since January 2005

Gross mortgage lending has fallen by 42% since September last year, according to the Council of Mortgage Lenders (CML).

Gross lending reached an estimated £17.7bn in September, a decline of 10% from August. While a seasonal fall is typically experienced between August and September, according to the CML, £17.7bn is the lowest gross lending figure since January 2005 and the lowest September figure since 2001.

CML director general, Michael Coogan, said: “The mortgage market is open for business. But weakening consumer demand and ongoing funding constraints will dampen monthly lending figures for the rest of this year and into the first quarter of 2009.”

Gross lending for the third quarter is estimated at £62bn, down 16% from the second quarter of 2008 and 37% from the third quarter of last year.

Coogan added: “We estimate gross lending in 2008 will be around £255 billion (£363 billion in 2007) and net lending of around £40 billion (£108 billion in 2007).”