Mortgage lending hits seven-year high in July

Lending stood at an estimated �22 billion for the month of July
Lending stood at an estimated �22 billion for the month of July

Gross mortgage lending reached its highest monthly total for seven years in July, data from the Council of Mortgage Lenders (CML) has found.

Lending stood at an estimated £22 billion for the month, marking an increase of almost £2 billion compared to June, and up £2.6 billion on the same month last year.

The CML said mortgage lending remains on track to hit £209 billion for the calendar year. That would mean an increase of 3% on 2014, and represent the highest annual lending since 2008.

CML economist Mohammad Jamei said: “At £22 billion, our estimate of gross lending in July is the highest monthly total for seven years, but is in line with our expectation that lending would strengthen in the second half following subdued activity earlier in the year.”

Meanwhile house prices across the UK’s largest cities jumped by the highest quarterly level in 11 years as demand for housing continues to outstrip supply, according to property analyst Hometrack.

The report said house prices across the country’s major cities lifted 4.3 per cent in the three months to July, the highest quarterly growth since 2004.

It also adds there is scope for further inflation as nine of the 20 cities the survey monitors still have average prices that are lower than their 2007 peak. It said overall city level house price inflation remains on track for 10 per cent growth this year, from its July rate of 8.5 per cent.

The three cities that are furthest below their 2007 peaks are Belfast, where average house prices are 47.6 per cent of what they were in eight years ago, followed by Liverpool, where prices are 13.2 per cent cheaper, and Glasgow, where they are 11.2 per cent lower.