Bloomberg News

U.K. Mortgage Lending Rose to 25-Month High in August, CML Says

September 20, 2011

Sept. 20 (Bloomberg) -- U.K. mortgage lending rose last month to the highest since July 2009, reflecting stability in the housing market, the Council of Mortgage Lenders said.

Gross mortgage lending rose 6 percent from July to 13.4 billion pounds ($21 billion), the CML said in a statement in London today. That’s the highest for an August since 2008. From a year earlier, lending rose 10 percent.

The level of lending points to a “subdued but broadly stable” market, CML Chief Economist Bob Pannell said in the statement.

A shortage of property supply is helping to support values, with Rightmove Plc saying yesterday that Britons raised asking prices for homes by 0.7 percent in September. Still, Bank of England data show U.K. mortgage approvals have held below 50,000 in every month but one since the start of 2010.

“While housing market activity has edged up from its lows recently, there remains little sign of any real step up,” Howard Archer, economist at IHS Global Insight in London, said in a research note. “The data do not point to any significant pick up in mortgage advances for house buying.”

--Editors: Fergal O’Brien, Andrew Atkinson

To contact the reporter on this story: Jennifer Ryan in London at jryan13@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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