There was an annual rise in the number of mortgages given to property buyers in July for the first time since 2007, Times Online reported yesterday.
The total number of mortgages made to homebuyers in July was 56,000, an increase of 24 per cent on June and 19 per cent higher on July 2007, the Council of Mortgage Lenders (CML) announced. According to the CML, the increase in mortgage numbers in July was the first ?material? growth since February 2007.
In terms of home loans for house buys and remortgaging, this also increased for the second month in a row to a total of ?14.5 billion. This compares to the gross mortgage lending figure of ?12.7 billion in June. The total lending worth to house buyers in July was ?7.5 billion, an increase of 27 per cent on June and a 6 per cent rise on July 2008.
Paul Samter, chief economist of the CML, said: ?There is certainly concrete evidence that lending for house purchase is increasing. But there are still constraints affecting the lending industry?s capacity to fund increased lending as well as less consumer motivation to remortgage for the time being. The overall lending picture is likely to stay relatively subdued for some time, especially as the wider economy is far from robust yet.?
The CML are described as being cautiously optimistic about the UK property market. However, Ernst & Young have today released a survey from its Item Club which states house prices will take five years to return to autumn 2007 levels.
