Mortgage lending rose 17 percent to an estimated 12.3 billion pounds ($20.2 billion) in June from May but still suffered a decline from the same period last year, new data from the Council of Mortgage Lenders (CML) showed Monday.
Gross mortgage lending slumped 48 percent from June 2008. It remained flat in the second quarter of this year from the first quarter, at 33.3 billion pounds, the data showed.
"The pick-up in June’s lending largely reflects seasonal factors, and these may well support lending volumes at moderately higher levels over the rest of the summer," CML economist Paul Samter said in a statement.
But restricted funding for mortgage lending, a reduced number of active lenders, rising unemployment and limited consumer demand were likely to hold back significant improvement, Samter added.
The CML maintained its forecast that mortgage lending will reach £145 billion this year.
Prices Bottoming Out
Meanwhile, asking prices for homes in England and Wales in July are an average of 3.1 percent lower than a year ago, with growing signs the past year's price falls have bottomed out, property website Rightmove said, according to Reuters.