April’s figure is down 9% from £11.4 billion in March and 60% from £26.1 billion in April 2008, according to new data from the Council of Mortgage Lenders (CML).
There was a slight fall for seasonal reasons as Easter fell in April this year (Easter was in March in 2008). Taken together, lending for March and April is down 57% on a year earlier.
CML director general Michael Coogan said: “It’s still too early to spot a clear pattern of recovery in the housing market as some commentators have suggested.
“Activity remains weak, and we have said we will see volatility in monthly lending figures as we bounce along at the bottom of the market. Our forecast for gross lending of £145 billion in 2009 remains unchanged.”
Andrew Montlake of independent mortgage broker Coreco said: "Despite this dip in gross lending, there is still a sense that the worst is behind us although, very clearly, any recovery is going take time and suffer setbacks. It's a case of two steps forward and one step back. Although some innovative new mortgage products have been launched recently, the fate of the property market is still very much in the hands of the lenders."
