Council of Mortgage Lenders says lending levels significantly lower than last year's figures

Mortgage lending in May was 44% lower than the previous year, according to figures released today by the Council of Mortgage Lenders.

The drop on last year’s figures came despite a 4% increase in the number of loans for house purchase from April to 52,700, which represents a 2% increase in value to £7.9bn.

Lending levels continue to be lower than last year and any recovery is still some way away

Michael Coogan

The figures are continuing evidence of the devastating impact of the credit crunch on the UK housing market and add to a dismal week for housebuilders, which this morning saw Persimmon announce it was making 1,100 redundancies.

CML director general Michael Coogan said: “Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped."

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