RICS: CML July mortgage lending data

Commenting on CML gross mortgage lending data, Oliver Gilmartin, RICS senior economist said: "The recent improvement in the monthly gross lending could offer some encouragement in what are typically slower summer months. Lending still remains 27% down on a year ago levels and access to mortgages remains challenging. While banks are still in the process of repairing their balance sheets and as the securitisation markets remain effectively closed, mortgage lending is unlikely to recover in any meaningful way. Even though the base rate has come down by 0.75 percent since August 2007, those without higher deposits have seen little benefit with many first time buyers effectively shut out of the market. Despite the prospect of further interest rate cuts as the economy slows sharply into 2009, tighter lending standards look set to stay."