However this is actually up by 10% year on year since January 2011. Although seasonal decline is expected the CML have shown that January was actually the sixth month in a row of higher lending.
In today’s CML market commentary, CML chief economist Bob Pannell comments:
“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.”