CML says mortgage lending fell in April

Monday, 23 May 2011 10:08

The mortgage market was subdued in April as the bank holidays led to a momentary "loss of signal" in gauging how well the sector is faring.

In its latest report, the Council of Mortgage Lenders (CML) says gross mortgage lending fell by five per cent year-on-year to April 2011.

Over the previous month, lending dropped by 14 per cent, taking the headline figure to £9.8 billion for the reporting period.

However, with the base rate constant at 0.5 per cent for over two years, the slump in April may have been due to reasons not directly linked to the health of the economy.

With an unusually high number of bank holidays - including the royal wedding - and warm weather coaxing many Britons out of their homes, CML chief economist Bob Pannell cites an "unfortunate temporary loss of signal" in terms of reliable market data.

"Statistical noise, associated with extended holidays ... makes it harder to read the immediate market situation," he says.

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