Mortgage lending up in January

UK mortgage lending picked up 10% in January compared with the same month last year.

According to the Council of Mortgage Lenders, gross mortgage lending stood at £10.5bn in January, down 14% from December, but up 10% on January 2011.

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 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."

20-02-2012