Positive signs for property in new report

Further signs of ’green shoots’ of recovery in the UK economy were seen today, with the release of a new report from the Council of Mortgage Lenders (CML).

According to the industry group, gross mortgage lending rose to £16 billion in July, a monthly increase of 26 per cent and the highest total in nine months.

However, the CML said that the market remained weak - with lending levels still 36 per cent below those of July 2008.

Over recent months, apparent improvements have been noted in the UK housing markets - a positive trend that could have knock-on effects in the construction and services sectors and on general economic growth.

Both Halifax and Nationwide have said that house prices have registered modest increases over the summer.

Meanwhile, repossession forecasts for 2009 have also been revised downwards.

CML economist Paul Samter commented: ’The bounce-back in activity from the extreme weakness around the turn of the year, coinciding with a seasonal bounce, is limited in how far it can go against the current back-drop.

’We expect improved sentiment to support the market, but a further significant pick-up is unlikely with so many obstacles in place. As a result, we anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge.’ADNFCR-2318-ID-19322362-ADNFCR