Gross mortgage lending drops in November

Gross mortgage lending fell in November, the first time monthly lending levels have dropped below the same month in the previous year since July 2005, according to new figures.

Research undertaken by the Council of Mortgage Lenders (CML) revealed that gross lending last month totaled £30.7 billion, compared to £33.5 billion the previous month and £33.2 billion in November 2006.

Announcing the figures, CML director general Michael Coogan claimed they represented clear proof of a slowdown in the property market.

"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," he added.

The CML has welcomed the recent steps taken by the Bank of England to increase liquidity in financial markets and provide more funds for lenders, but called for increased action to increase available funding.

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