The new data suggests that lending remains on track to meet our new revised forecast, published earlier this month, of 140 billion for the year as a whole.
In today's market commentary, CML economist Paul Samter commented:
"It is difficult to see anything other than a slow market for the rest of this year as underlying activity remains subdued. The rest of 2010 is likely to see rather lower lending and transaction numbers compared to the same period last year. Late 2009 saw a pick up as some home buyers looked to move before the end of the first stamp duty holiday.
"But for most home owners, the situation is not that bleak. The vast majority of households continue to pay their mortgages in full every month, and many have benefited from the record low interest rates. This looks set to continue for some time yet. While there are a range of risks to the outlook, low rates will further help most stay on top of their finances."
Commenting on the figures released by the CML today, David Whittaker, managing director of Mortgage for Business said:
Although this is a slowdown in lending compared to last year, investors are still capitalising on excellent opportunities at the moment. Despite some small monthly fluctuations, house prices will remain around their current levels for the rest of the year. And new lenders entering the market have given investors more choice in buy-to-let products. These factors have helped the property investment sector.
"But lending overall will remain subdued as we move into 2011 as the economy faces up to the funding gap, regulation becoming increasingly tight and the recovery advances more slowly than expected. Inflation remains above target, but the base rate will be held for as long as possible - and while it is low there will be investors looking to take advantage.
