"The subdued nature of property transactions and mortgage lending in July are consistent with a less positive backdrop for house purchase activity post-referendum."
This closely matches June’s gross lending total of £21.5 billion and is 1% lower than July last year.
CML chief economist, Bob Pannell, said: Indicators are likely to provide truer readings of market conditions the further we move away from the distorting effects of April’s stamp duty change. The subdued nature of property transactions and mortgage lending in July are consistent with a less positive backdrop for house purchase activity post-referendum.
"The Bank of England expects stronger economic headwinds to build as we move into 2017, and the Monetary Policy Committee’s package of monetary policy measures represents a spirited effort to lean against these on a timely basis. The MPC has pencilled in a further cut in Bank Rate later this year, but aims to avoid negative interest rate territory.
"The Term Funding Scheme should boost market sentiment a little, by engineering broader cuts to rates for existing mortgage borrowers than would have been the case, but it is not clear how well the Bank’s actions will underpin borrower demand in a more adverse economic climate."
John Eastgate, Director of Sales at OneSavings Bank, commented: “The early indications are that fears of a significant slump in the immediate aftermath of the EU referendum have been overblown somewhat. While the medium to long term economic impact of the decision is far from clear, the mortgage market would appear to be in business as usual mode.
"Buyers, and in particular, investors, who are in a position to enter the market are just getting on with it, rather than sitting on their hands and waiting for the political and economic uncertainty of Brexit to dissipate. Moreover, the Bank of England’s package of monetary stimulus measures opens up the possibility of even cheaper mortgage products. This will continue to stimulate buyer demand, as well as supporting buoyant remortgage activity as borrowers look to take advantage of the incredibly low rates on offer."
