Gross mortgage lending falls 2 percent year-on-year in March

Published 20th Apr 2011

Gross mortgage lending in Britain was 2 percent lower last month than in March 2010, the Council of Mortgage Lenders said on Wednesday, providing further evidence of a sluggish housing market.

On the month, gross lending for home purchase rose 21 percent to 11.3 billion pounds and the industry body said it expected mortgage credit availability to improve this quarter.

"The housing market has emerged hesitantly from hibernation," said Bob Pannell, CML chief economist.

Remortgage demand firmed, helped by expectations of higher interest rates. Remortgage approvals in February were the highest for more than two years.

A Reuters poll published on Tuesday showed house prices were likely to fall 1.3 percent over the course of 2011 before recouping losses in 2012.

Government austerity measures, sluggish wage growth and limited mortgage finance have depressed house prices since the middle of 2010.

The CML data covers banks, building societies and others who undertake about 94 percent of all residential mortgage lending.

Source: ' Reuters '

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