The Council of Mortgage Lenders announced on Thursday mortgage lending had risen by 26% in July compared to the previous month. Although this figure ought to be viewed in the context that lending remains 36% lower than the same period last year, the news can be seen as a further indication that the UK housing market is making a slow recovery. This will come as good news to homeowners and property developers who have been suffering over the last year or two, during which time the average cost of homes in the country has fallen dramatically.

The 26% rise in July represents a lending figure of around £16 billion, markedly down on the £24.9 billion reached in July 2008. As many homeowners have discovered recently, the housing market is very sensitive to economic change. Moreover, it was largely the mortgage sector that resulted in the current worldwide downturn, as subprime lending prompted a financial crisis in the US that spread out quickly across the rest of the world. Furthermore, the so-called credit crunch has meant that the availability of credit is no longer what it used to be, with many of those in need of a loan unable to secure financial help.

Therefore, the increase of mortgage lending is indicative of a stronger housing market and tougher economic situation. In the belief that times are changing for the better, many homeowners will want to improve their properties now whilst the cost of materials and labour are still at recession prices. Furthermore, home improvement could secure a higher sale price when the market fully recovers, which will bring an end to what has been a miserable time for homeowners and property developers.

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