August gross mortgage lending up 10% year-on-year

Gross mortgage lending totalled £13.4bn in August, up 10% on the £12.1bn advanced in August 2010, according to data from the Council of Mortgage Lenders.

August’s lending figure also represents a 6% increase on the £12.6bn lent in July, and is the highest monthly total since July 2009.

But Bob Pannell, chief economist at the CML, cautions that August’s strong performance merely offsets July’s weak lending figure.

He says: “Much of the recent variation in monthly lending figures appears to have reflected seasonal factors, with the underlying picture being one of activity levels that continue to be subdued but broadly stable.

“The August performance more or less offset the weaker than expected July figure. Taking July and August together, lending has shown little change on the same months of 2009 and 2010.”