This is 1% lower than July’s gross lending figure of £12.7bn and a 4% fall from £13.1bn in August 2011.
CML chief economist Bob Pannell, said: “House purchase activity continues to be a little above year-earlier levels, but the housing numbers are far from strong.”
However, the CML said it expects a concerted marketing effort from builders and the impact of the Funding for Lending scheme which it said made rates more competitive to boost take up of NewBuy over the coming months.
“The Funding for Lending Scheme is a bold move that has the potential to greatly influence the course of the housing market over the next year or so. While not a panacea for all housing market problems, the scheme does offer the potential to improve the lending environment. Unfortunately, it will be towards year-end before any initial assessment of its impact can be reached.”
However, Ashley Brown, director of independent mortgage broker, Moneysprite, suggests this “bluster” over the Funding for Lending scheme doesn’t reverse the broader malaise within the market.
“Who are the Council of Mortgage Lenders trying to kid? It may have triggered some activity but unfortunately none of it has been in the right areas. It has seen better deals for the people who don’t really need them, and little of note for those that do.”
