The Council of Mortgage Lenders have reported that gross mortgage lending declined to an estimated £10.5 billion in January.

A drop of 14% from Decembers figures of £12.2 billion was boosted by the fact that the figure was significantly higher than the total of £9.5 billion in January of 2011. While a seasonal decline was not unexpected, January was still the sixth month in a row where year-on-year lending has seen an increase.

CML Chief Economist, Bob Pannell said:

“Housing and mortgage market sentiment has improved a little over 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 complete 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.”

Tags: council of mortgage lenders, gross mortgage lending, mortgage figures