According to the Council of Mortgage Lenders, mortgage lending has risen to its highest level in six months.  Lending rose by 17% during June to around £12.3bn thanks to a seasonal increase in buying activity.

Dominic Agace, Managing Director of Winkworth says:

‘This reflects what we are seeing in our offices, with an ongoing improvement in the property market over the course of 2009.  In 2008, the usual summer upsurge in activity was overridden by the ongoing decline in the property market and restriction in finance availability.  Therefore, the return of seasonal factors is, in itself, an indication of a marked improvement in the property market.

‘What these figures don’t reveal is to what extent the re-mortgage business contributes to this number, as this has clearly reduced as a percentage of gross mortgage lending. This element somewhat affects these figures as a barometer of the property market.

‘We are still in a marketplace constrained by finance availability, but these figures can only be seen as the backdrop to an improving picture of the property market in 2009.’