LONDON (AP) - British mortgage lenders yesterday reported lending increased modestly for April over the month before but declined from a year ago, and a separate government report underlined the deep slump in the country's housing sector.

The Council of Mortgage Lenders reported gross lending of £26.1 billion ($51.1 billion) in April, up eight percent from March, though five percent below April 2007.

But the number of mortgages granted to first-time buyers was down 36 percent compared to a year earlier, and the average deposit for a first time buyer rose to a three-year high of 13 percent, the council said. "The squeeze on mortgage funding has led many lenders to tighten their lending criteria. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market," said Michael Coogan, the council's director general.

Orders for private housing in the UK dropped by 25 percent in the three months ending April 30 compared to the previous three months, and were off 17 percent in the 12 months ending April 30 compared to the previous 12-month period, the Office for National Statistics said.

The report said construction orders overall were down two percent in 12 months, with a surge in infrastructure offsetting the drop in private housing starts.

Shares in home-building companies were battered earlier this week as the market has reacted to a downturn in house prices, tighter lending criteria and a falling number of real estate transactions.

The sector perked up yesterday, however, with Barratt Developments up 15.5 percent, Bovis Homes up 14.3 percent and Taylor Wimpey up 17.2 percent in late morning trading on the London Stock Exchange.