Mortgage lending increases

Gross mortgage lending declined to an estimated £10.5 billion in January. Lending fell 14% from £12.2 billion in December but was 10% up on the £9.5 billion in January 2011, according to the Council of Mortgage Lenders (CML). While a seasonal decline is expected, January was the sixth month in a row of higher year-on-year lending, with first time buyers boosting numbers. "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," commented Bob Pannell, chief economist at the CML.