Year-Over-Year Jump in U.K. Purchases Brings Hope But...

The first "material" year-over-year increase in July's purchase lending seen in two years has increased hopes for a recovery in the United Kingdom's market, but experts remain reluctant to forecast a turnaround. Purchase mortgages in July represented 56,000 loans totaling £7.5 billion ($12.4 billion), up from 47,000 loans totaling £7.1 billion ($11.8 billion) during the same period last year, according the Council of Mortgage Lenders, London. CML economist Paul Samter said that while evidence is strong that purchase lending in increasing, constraints on the industry's ability to fund increased lending, reduced consumer interest in refinancing and persisting weaknesses in the economy make it likely that on the whole lending could remain relative subdued for some time. During July, total gross U.K. lending was £14.5 billion ($24.0 billion), 42% lower than during the same month last year.