Although this is the largest gross lending figure posted by the CML since October 2008, it is still down 36 per cent from the £24.9bn figure in July 2008.
The CML also says that this is the lowest July lending figure since 2001 and £11bn lower than the July average over the previous seven years of £27bn, but it also says lending volumes remain consistent with its forecast for £145bn in gross mortgage lending this year.
CML economist Paul Samter says: “Most of the indices point to house prices rising modestly over the summer months, but the bounce-back in activity from the extreme weakness around the turn of the year, coinciding with a seasonal bounce, is limited in how far it can go against the current back-drop.
“We expect improved sentiment to support the market, but a further significant pick-up is unlikely with so many obstacles in place. As a result, we anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge.”