Gross mortgage lending grows by 9% in July

The Council of Mortgage Lenders estimates that gross mortgage lending reached £22 billion in July.

This is 9% higher than June (£20.1 billion), 14% higher than July last year (£19.4 billion) and the highest monthly figure since gross lending reached £23.6 billion in July 2008.

Mohammad Jamei, CML economist, comments: "At £22 billion, our estimate of gross lending in July is the highest monthly total for seven years, but is in line with our expectation that lending would strengthen in the second half following subdued activity earlier in the year. We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers.  Today’s data is in line with our forecast that gross lending will rise to £209 billion this year, 3% higher than in 2014."