Gross mortgage lending up slightly Published: 21/08/2008

Gross mortgage lending in Britain was up slightly in July, according to new research.

Figures from the Council of Mortgage Lenders show around £24.8 billion worth of mortgages was lent in July.

This represented a five per cent increase on June's figures and suggested the property market might be showing early signs of recovering.

Although last month's increase showed positive signs, the figure was still a massive 27 per cent down on the figure reported at the same time last year.

Bob Pannell, head of research at the Council of Mortgage Lenders, said it represented a "notable decline" from a year ago, despite the slight increase in July.

He said: "This continues the weaker picture seen in June and points towards the more subdued levels of lending we are likely to see in the second half of 2008."

Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said that the monthly gross lending increase was encouraging – especially during the "typically slower" summer months.

But he added: "While banks are still in the process of repairing their balance sheets and as the securitisation markets remain effectively closed, mortgage lending is unlikely to recover in any meaningful way."

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