Gross mortgage lending totalled an estimated £18.7 billion in October, almost 7% higher than a particularly weak £17.5 billion lent in September, according to the Council of Mortgage Lenders.
CML director general Michael Coogan said: "While lending in October ticked up from a low figure in the preceding month, the outlook is one of continuing weakness for housing and mortgage markets in the coming months, despite the Bank rate cuts in October and November.
"Consumer confidence is now being affected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing shortage of mortgage funding.
“The government should therefore publish the delayed
Commenting on the data, Simon Rubinsohn, RICS chief economist said: "The bounce in mortgage lending in October is broadly consistent with the pick-up in new enquiries signalled by the latest RICS housing market survey.
“Lower prices may be attracting some opportunistic buyers of property while the stamp duty holiday could also be encouraging new entrants.
“However, with unemployment set to rise sharply over the coming months, this modest improvement in turnover is unlikely to run very much further. Significantly, with a meaningful overhang of stock already in place and more distressed sales likely, prices are set to fall some way further."
Date: 20th, November, 2008
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