The Council of Mortgage Lenders recent figures paint a not-so-flattering picture of the housing market as it reaches the end of the summer.  Total mortgage lending for the month of July fell short of June’s figure by 100 million pounds.  The 12.6 billion pound total was also well short of the 13.3 billion pounds which were transacted last year at the same time.

The chief economist of the CML, Bob Pannell, commented on the weakness in numbers which is being demonstrated now, saying: “UK economic prospects have deteriorated as a result of weaknesses in some of the major economies and renewed stresses in the Eurozone area associated with the sustainability of government finances.

“Housing market conditions remain subdued, but pretty stable. Seasonal factors continue to provide some support, but underlying house purchase activity may drift lower.”

Fixed rate remortgages are also starting to see significant cool off as the possibility of a base rate hike has been pushed several months into the future.  Many economists are not seeing a hike of the base rate for at least another year.

Even though there is huge pressure existing within the housing market, fewer repossessions took place in Q2 of this year.  An estimated 9,000 transpired during that time compared with 9,100 within the first quarter.

There were an estimated 1,400 fewer repossessions during the first half of the year as a whole, totaling 18,100.

Pannell’s comment regarding seasonal factors is wishful thinking in some analysts’ eyes as the housing market as a whole is struggling along with the global economy.