Gross mortgage lending edges up in 2011
Monday, 23 January 2012 11:37 AM
The year-on-year total of gross mortgage lending rose for the fifth month in a row in December, according to the Council of Mortgage Lenders (CML).
Although the £11.7bn total for the month was down 12 per cent on November, it was up 12 per cent on December 2010.
That means gross lending for 2011 as a whole was £140bn, up three per cent on the £136bn seen in 2010 and slightly ahead of the CML's forecast.
Bob Pannell, CML chief economist, said: "The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short term economic prospects are challenging.
"There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year.
"But, continuing Eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call."
Paul Hunt, managing director of Phoebus Software, welcomed the "encouraging" news, especially considering the effect the problems in the Eurozone might have had towards the end of last year.
"On a seasonally adjusted basis, gross lending rose in seven of the last eight months, which last happened in 2009. 2012 will certainly offer major challenges to lenders hoping to expand their activities in the UK, but their efforts in the latter part of 2011 demonstrate they are well prepared to meet them," he added.
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