Mortgage lending remains subdued

Despite an increase in mortgage approvals in July the market remains considerably weaker than it was a year ago, according to the Council of Mortgage Lenders (CML).

The stagnation is expected to continue in the second half of this year as borrowers struggle to find suitable mortgage products in the current climate.

The National Association of Estate Agents (NAEA) has also pointed to figures that show the number of house hunters on the market dropped from 226 in June to 192 in July.

It said that while the reduced number of people entering the property market could be due to the holiday season, the figures also indicate a reduction in consumer confidence.

Chris Brown, president of the NAEA, accused the government of aggravating problems in the property market saying: "Consumers are feeling anxious and have every right to be with the government''s inability to reassure the market, especially over the issue of stamp duty."

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