The Council of Mortgage Lenders estimates that total gross mortgage lending declined to £10.4 billion in January. This is 9 per cent lower than December’s gross lending figure of £11.4 billion and a 3 per cent fall from £10.7 billion in January 2012.
Commenting on market conditions in this month’s market commentary, and data analyst Caroline Purdey observes: “Housing sentiment remains positive, despite ongoing economic pressures. A worsening in the outlook for inflation presents a greater headwind, but we still expect the funding for lending scheme to lift activity over coming months.
“House purchase activity was robust into the start of 2013, on the back of better mortgage availability and pricing, and we share the Bank of England’s confidence that this will continue over the coming months.”
Christopher Down, Chief Executive, Hearthstone Investments said,
“The latest CML figures show that potential homeowners continue to face a number of economic pressures, including inflation and stringent lending conditions, which are preventing many from getting a foot on the housing ladder”.
“However, as has consistently been the case throughout the last twenty years, ‘bricks and mortar’ residential property continues to be seen as a strong and favourable investment –primarily due to its tangible nature, strong returns and low volatility. There appears to be a general sense of optimism and a largely positive outlook for the UK housing market in 2013 building on a modest upturn in first-time buyer transactions in 2012.”
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