Gross mortgage lending rises by 10%
Posted on 22nd February 2012
Gross mortgage lending in January was ten per cent higher than a year ago, according to the latest report by the Council of Mortgage Lenders.
Research carried out by the body shows that gross mortgage lending in the UK totalled an estimated £10.5 billion last month, which is down slightly from December but a big rise on the £9.5 billion recorded in January 2011.
The CML noted that January was the sixth month in a row of higher year-on-year lending, while the seasonal decline from December was fully expected.
Bob Pannell, CML chief economist, said housing and mortgage market sentiment has clearly improved in recent weeks, which bodes well for the near future.
"The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March," he added.
According to the expert, if inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year.
"This can only be good news for the housing market further down the track," Mr Pannell commented.