Gross mortgage lending falls in January
Monday, 21 February 2011 09:38
Gross mortgage lending fell in January, according to new figures released by the Council of Mortgage Lenders (CML).
Falling to £9.2 billon in January from £10.6 billion in December, mortgage lending tumbled by 13 per cent.
However, the body notes that this represents a five per cent increase from January 2010, when mortgage lending rested at £8.8 billion.
Highlighting that these figures could be a little distorted because some house-buying activity was brought forward at the close of 2009 to take advantage of stamp duty concessions, CML adds that this is the first year-on-year rise since August 2010.
CML economist Peter Charles comments that, in light of the latest Inflation Report from the Bank of England, mortgage lending activity is likely to remain relatively flat over the next year.
"As a greater degree of equilibrium is restored to financial markets, the availability of funding for mortgage lending should improve from current levels to support more normal levels of activity," Mr Charles says.
However, he adds that the levels of mortgage lending seen in 2000 are not likely to return.
Recent research from Clydesdale & Yorkshire Banks showed that some 30 per cent of UK residents plan to move home this year.
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