MORTGAGE lending dived in June, while private rents climbed for the third month in a row, according to data released yesterday by the Council of Mortgage Lenders (CML) and today by LSL property services.
Gross mortgage lending was down five per cent at £11.9bn, compared to £12.5bn in May and £12.6bn in June last year, the CML said. But the fall wasn’t enough to outweigh the previous two months, and the second quarter proved to be two per cent up on the first.
“Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy,” said CML’s Bob Pannell.
This came as tenants were hammered by a third successive monthly increase in rents, this time of 0.9 per cent, driving rents to £718 per month. London tenants were hit hardest, according to LSL property services, with rents hitting a new high of £1,047 per month.
“As if it couldn’t get any more difficult for first time buyers, rents are still rising, undermining how much they can put aside each month to meet the steep deposits lenders require,” commented Jonathan Moore, director of easyroommate.co.uk.