The UK’s outstanding mortgage book is effectively stagnating at the moment with the adjusted net lending total of £343 million in June almost unchanged from May (£331 million), which was the lowest adjusted monthly figure on record.
CML economist Paul Samter observed:
“Activity is certainly more positive than at the start of the year. This is consistent with the improvement in housing market sentiment, but the outlook is still sluggish, as capacity constraints on the lending industry and continuing deterioration in the labour market will act as a brake on the pick up.
“Overall, these numbers are consistent with our outlook for a gradual improvement from historic lows following the financial system turmoil last year, but for any recovery to be slow and drawn out.”
