Gross lending hits high

The level of gross mortgage lending by mutuals has hit its highest level so far this calendar year, it has been revealed.

Data from the Building Societies Association has revealed that the sector collectively lent £2 billion in July, an 11% rise on June's figure of £1.8 billion.

Director general of the organisation Adrian Coles suggested that the level of approvals for house purchases may indicate further increases in lending over the coming months.

However, he also warned of potential threats to this growth from possible falls in household income and increases in job losses over the months ahead.

Mr Coles made his comments at a time when evidence of recent house price movements has pointed to increases in value.

Land Registry figures for England and Wales in July showed that the overall sale price of the typical residence rose by 0.4% from June's figure to £166,798, with an annual hike of 6.7%.