Gross mortgage lending virtually unchanged in July

Gross mortgage lending in July was an estimated £12.6 billion, according to new data from the Council of Mortgage Lenders. This is marginally lower (1%) than June's gross lending figure of £12.68 billion and a 6% fall from £13.3 billion in July 2010.

In today's market commentary, CML chief economist Bob Pannell observes: "UK economic prospects have deteriorated as a result of weaknesses in some of the major economies and renewed stresses in the eurozone area associated with the sustainability of government finances.

"As a result, UK interest rates look like staying lower for longer.

"Housing market conditions remain subdued, but pretty stable. Seasonal factors continue to provide some support, but underlying house purchase activity may drift lower over the coming months."