This closely matches June’s gross lending total of £21.5 billion and is 1% lower than July last year.
CML chief economist, Bob Pannell, said: Indicators are likely to provide truer readings of market conditions the further we move away from the distorting effects of April’s stamp duty change. The subdued nature of property transactions and mortgage lending in July are consistent with a less positive backdrop for house purchase activity post-referendum.
"The Bank of England expects stronger economic headwinds to build as we move into 2017, and the Monetary Policy Committee’s package of monetary policy measures represents a spirited effort to lean against these on a timely basis. The MPC has pencilled in a further cut in Bank Rate later this year, but aims to avoid negative interest rate territory.
"The Term Funding Scheme should boost market sentiment a little, by engineering broader cuts to rates for existing mortgage borrowers than would have been the case, but it is not clear how well the Bank’s actions will underpin borrower demand in a more adverse economic climate."
Henry Woodcock, principal mortgage consultant at IRESS, said: “After the EU referendum the housing and mortgage markets largely shook off the short-term uncertainty and quickly got back to business as usual.
“There has been some housing sunshine for first time buyers around the UK with Wales, Scotland, Northern Ireland and London all seeing increased borrowing in the second quarter. Landlords filled their boots earlier to beat the stamp duty changes in April and the buy to let market has since stalled somewhat. This has resulted in more starter homes being snapped up by first time buyers eager to bag a ‘do-up’ bargain.
“Although there was speculation on the 0.25% base rate cut, borrowers already had access to a range of attractive low interest rate deals, with 10-year fixed rate mortgages as low as 2.39%. As rates have fallen the market has been flooded with many more mortgage products as a result of fierce competition.
Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Although it is early days, it appears the market is settling down and proving more resilient than many people have given it credit for. We are certainly finding this at the coalface with strong determination being shown by genuine buyers and sellers who are aiming to find a fair price between them so that they can move on.
"Looking forward, we are quite hopeful that as more people return from holidays the traditionally busier autumn season will live up to expectations."
