Lending down by over 60%: CML

House purchase lending in August was down by 63 per cent year on year to £6 billion, it has been reported.

During the month of August, 42,200 house purchase loans were granted with 15,600 of them given to first-time buyers, according to the Council of Mortgage Lenders (CML).

The CML said that the number and value of loans had plummeted to the lowest levels since it began collecting data on a monthly basis in January 2002.

Home movers accounted for 26,600 loans worth £4.1 billion, which represented a 61 per cent fall in volume and a 64 per cent drop in value from August 2007.

This could suggest that more homeowners are planning to stay in their current properties and redevelop them.

Homeowners that invest in home improvements to add value to their property can should be able to "offset any potential price falls", according to Homebuilding & Renovating Magazine.