Mortgage lending subdued

Mortgage lending shows no sign of picking up, according to the latest figures from the Council of Mortgage Lenders (CML).

Gross new lending, for both house buyers and those remortgaging, fell by one per cent in July to £12.6bn.

That was also six per cent down from the figure for July last year.

The CML described the property market as "subdued, but pretty stable" and warned that sales might fall in the coming months.

The CML's chief economist, Bob Pannell, said: "Underlying house purchase activity may drift lower over the coming months.

"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."