The flimsier the market, the higher the price

The increase in mortgage lending for July 2008 (£3.2bn) was above the increase in June 2008, but below the six-month average of £5.6bn.The number of loans approved for house purchase (33,000) and remortgaging (69,000) were both lower than in June.

The figures for mortgages approved, but not yet actually lent, are considered a good indicator of near-term trends in the market.

For those remortgaging, mortgages approved fell from 58,624 in June to 54,532 in July - a 21% fall on a year ago.