CML finds lending up last month despite broader warnings of housing market slowdown
Gross mortgage lending was up 15% in June, according to data released today by the Council of Mortgage Lenders (CML).
June mortgage lending was an estimated £13.1 billion, a £1.7 billion increase on the £11.4 billion leant in May. The latest figure represents a 7% increase on June 2009 levels.
Paul Samter, CML economist, said: “Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.”
Nevertheless experts are still predicting a gloomy future for the housing market. Yesterday’s Rightmove House Price Index showed property prices falling in July for the first time in 2010, while recommendations by the Financial Services Authority (FSA) could make it more difficult for potential buyers to access mortgages.
Samter said: “The FSA has outlined a clear direction of travel as part of its mortgage market review. The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit.”