CML: lending falls further

Total mortgage lending in the UK declined by three per cent in June, down 32 per cent from last year, according to new figures released today (July 18th).

The Council of Mortgage Lenders (CML) reported a reduction in gross lending to an estimated £23.8 billion last month, which is the lowest level since February 2006.

A fall in the number of home sales, with transactions running at close to half the amount they were a year ago, has hit lending for house purchases at a traditionally busy time of year.

Michael Coogan, CML director general, blamed muted market activity on funding shortages and dampened consumer demand.

He said: "While by historic comparisons we still have had a good level of gross lending, new net lending has been constrained in 2008 and this picture will continue for the rest of this year."

However brighter news for the UK property market could be in sight, as yesterday the CML urged the government to provide funding to break the current logjam in lending.

Mortgages News posted on 18/07/2008 14:34:24