Lending remains sluggish

The rate of UK mortgage lending growth remained flat in December, new figures have shown.

Figures from the British Bankers Association (BBA) revealed that the seasonally-adjusted increase in lending for the month was almost unchanged from November, with a small rise from £4.6 billion to £4.7 billion.

However, this figures remained below the six-monthly average of £5.2 billion.

BBA director of statistics David Dooks acknowledged that lending had "weakened notably in the second half of 2007", which he attributed to the credit crunch and lower consumer demand.

In response to the statistics, Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said anyone planning to take out a mortgage could face new difficulties as a result of the present situation.

He said borrowers would have to find "even larger deposits" than previously.

Mr Gilmartin said he expected the current market situation to persist "in the near term".


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