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Mortgage lending at highest level since 2008

Mortage lending has reached the higest level for six years.

The Council of Mortgage Lenders estimates that gross mortgage lending reached £19.1 billion in July.

This is 7% higher than June (£17.9bn), 15% higher than July last year (£16.7bn) and the highest monthly figure since August 2008 (£19.3bn).

CML market and data analyst Caroline Offord said: "Mortgage activity seems to have remained robust following the regulatory changes but the eventual impact of these remains uncertain.

"Property transactions in the first half of the year showed a 25% increase compared to the same period a year ago but, as set out in our recent market forecast update, we expect that intensifying affordability pressures could start to dampen this upwards trend.

"Economic conditions have strengthened, but while the Bank of England has signalled an improved economic outlook since May, headwinds remain and the message about future rate rises being measured and gradual remains unchanged."

The Office for National Statistics said on Tuesday that UK house prices had risen by 10.2% over the 12 months to June to hit a new record high of of £265,000. However, the London average was now almost £500,000.

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