Gross mortgage lending 60% down

| May 21, 2009 | 0 Comments
Gross mortgage lending 60% down

Gross mortgage lending declined to an estimated £10.4 billion in April, the Council of Mortgage Lenders (CML) has reported.

The total fell 9%, from £11.4 billion, in March and is 60% below the £26.1 billion figure for April 2008.

The body points out that seasonal factors have to be taken into account as Easter fell in April in 2009 and in March in 2008; however, taken together, gross lending for March and April 2009 declined 57% on a year-on-year basis.

CML director general, Michael Coogan, comments: “It’s still too early to spot a clear pattern of recovery in the housing market as some commentators have suggested.”

He adds: “Activity remains weak, and we have said we will see volatility in monthly lending figures as we bounce along at the bottom of the market. Our forecast for gross lending of £145 billion in 2009 remains unchanged.”

Recent indications of recovery in the UK property market include the National Association of Estate Agents reporting that its members sold more houses in April than in any month since October 2007.

In addition, the Royal Institution of Chartered Surveyors has described its members as “universally optimistic” over sales with new buyer inquiries across England and Wales increasing for the sixth consecutive month in April.

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