8% decline in gross lending in November
20 Dec 07
Gross lending declined to an estimated £30.7 billion in November, down 8% from £33.5 billion in October and 8% from £33.2 billion in November 2006, according to the Council of Mortgage Lenders.
This is the first time that monthly lending levels have dropped below the same month in the previous year since July 2005, and clearly demonstrates the market slowdown has started.
CML director general Michael Coogan commented:
“As we had forecast, lending in November dipped below its 2006 equivalent for the first time this year and we expect this trend to continue into 2008. However, while lending will be subdued in coming months we see this as primarily a result of lack of available funding rather than lack of consumer demand.
“We welcome the recent initiative by the Bank of England with other central banks to inject liquidity. This support needs to continue, and be increased, in the coming months.”
Notes to editors
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.8 million mortgages in the UK, with loans worth over £1.1 trillion.
2. The next gross lending press release will be on Monday 21 January 2008.
3. The CML’s gross lending data is an estimate for the previous month based on lending figures provided by a sample of lenders representing more than 70% of the mortgage market. The aggregate of these figures is scaled up to represent the whole market.
4. The CML also publishes detailed lending data from its Regulated Mortgage Survey a few weeks after each gross lending press release. This includes a revised total lending figure which is taken from the Bank of England.
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