Mortgage lending down 50% in one year

And, while the figures show a 17% increase from £10.5billion lent in April, they are only indicative of a rise from already low levels.

Gross lending in the second quarter of 2009 totalled an estimated £33.3billion, unchanged from the first quarter, which was the lowest quarterly reading since the first quarter of 2001.

CML economist, Paul Samter said: "The pick-up in June’s lending largely reflects seasonal factors, and these may well support lending volumes at moderately higher levels over the rest of the summer.

"But the combined effects of the restricted nature of mortgage funding, reduced number of active lenders, weak labour market and limited consumer demand are likely to hold back any significant and underlying improvement. Our forecast for gross mortgage lending of £145billion this year is unchanged."

Nick Hopkinson, Director of Property Portfolio Rescue (PPR), said of the figures: "Despite a marginal improvement from the dire lending figures announced last month, the mortgage market continues to suffer, with gross lending down 48% on the same time last year.

"Strict criteria and the bank’s sustained aversion to lend, is making it almost impossible for borrowers to secure a mortgage in the current climate. Until this situation is rectified, we will not witness any signs of a true recovery in the property market."

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