Gross lending by building societies has continued to rise. In July it totalled £2.1 billion, the highest monthly figure for 2009, but 42% lower than the £3.6 billion lent in July 2008.

Net lending by building societies in July 2009 was -£577 million compared to -£112 million in July 2008. Mortgage approvals in July were £1,490 million compared to £2,636 million 12 months before.

Adrian Coles, director-general of the Building Societies Association, said: “The mortgage market continues to show signs of some sort of recovery when compared to the first few months of this year. However