Gross mortgage lending 10% stronger than a year ago

by Aaron Strutt

Feb 27 2012

Gross mortgage lending was an estimated £10.5bn in January. Lending fell by 14% from £12.2bn in December but was 10% higher than the total of £9.5bn in January 2011. This is according to the Council of Mortgage Lenders.

Although a seasonal decline is expected, January was the sixth month in a row of higher year-on-year lending.

CML chief economist Bob Pannell says: “Housing and market sentiment has improved in recent weeks.

“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 compete deals before the stamp duty concession ends in March.

“Should 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.”

February 27, 2012