June gross mortgage lending declines

Lending in the first half of this year totalled £67.9billion. This is 7% higher than the first six months of 2011 (£63.7billion).

CML chief economist Bob Pannell said: "Mortgage lending has experienced something of a see-saw pattern over recent months, largely reflecting the short-term spike and subsequent trough in house purchase activity associated with the ending of the stamp duty concession for first-time buyers in late March.

"Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy.   

"The recent launch of the funding for lending scheme (FLS) comes at a time when credibility in further quantitative easing had started to wane.

"FLS will help guard against a contraction in lending over the next 18 months and, if the external environment is sufficiently supportive, should underpin the housing market and support the Government’s wider growth agenda."

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