Gross lending down but "at good historic levels"

Posted: 20 Jun 2008 15:38:52 GMT

The latest report from the Council of Mortgage Lenders (CML) show that gross lending figures are only slightly down on the previous month.

The latest report from the Council of Mortgage Lenders (CML) show that gross lending figures are only slightly down on the previous month.

According to the CML, gross lending totalled an estimated £25.5 billion in May compared to £26.1 billion in April.

Compared to 2007, the figures are considerably lower, but remain "at good historic levels", the CML has said.

Responding to the latest results, Michael Coogan, CML director general, has suggested that strength in the market in the coming months will come from remortgaging.

Mr Coogan said: "The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market".

House purchase activity will, Mr Coogan says, slow due to "funding reasons" but the CML is awaiting signs "of the Bank of England's Special Liquidity Scheme indirectly helping to ease the current logjam".

Housing market fears must be taken in context. Whilst prices have fallen 4.4 per cent since last year, they are still up by five per cent compared to two years ago.

Statistics from the Department of Communities and Local Government show that the average house price is still around 39 per cent higher than it was five years ago.

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