The figures from The Council of Mortgage Lenders (CML) showed that lending was down on Decembers £26.9 billion, but shows is nearly a third higher than the £17.4 billion loaned in January 2005 making it the highest January lending figure on record
The CML says that lending typically weakens round the start of the new year because house buying activity slows down between the autumn and Spring. But Januarys figure is strong because housebuying has remained robust.
Commenting on today’s data, Michael Coogan CML director general said:
“Mortgage lending in all categories has been strong in recent months. This reflects the fact that consumers are feeling more certain about the future of the housing market and confident that house prices are unlikely to fall.
“The interest rate outlook for the near future is for stable rates. Our recent figures show that the majority of new borrowers are taking out fixed-rate loans to provide payment certainty at affordable cost. The mortgage market looks set for continued steady growth against a backdrop of pretty positive economic conditions.”
The Building Societies Association (BSA) also reports higher lending figures for January 2006 than the previous year. Adrian Coles, director general of the BSA, said: Seasonally adjusted approvals were the highest since November 2003. This confirms other evidence that there has been a slight rally in the housing market.
