Mortgage lending up 14% in December
Gross mortgage lending in the UK increased annually in December for the first time since October 2007. The figures released by the Council of Mortgage Lenders revealed that an estimated £13.7 billion was lent in December 2009 - 14% higher than in the previous month and 3% more than during December 2008.
Commenting on the figures David Marshall, business analyst with ESPC said: "We saw a upturn in sales towards the end of 2009 as the market continued its recovery. Buyers of properties in the £125,000 to £175,000 bracket were also motivated to complete sales before the end of the calendar year so as to avoid paying Stamp Duty though, so the rise is at least partly reflective of that. It’s likely we might see a corresponding drop in the January figure as a result.
It's also worth remembering that these annual rises bear comparison with the low values recorded towards the end of 2008 and whilst activity is steadily improving it remains well below what would be considered 'normal' levels. As the year progresses though we would expect to see a gradual improvement in the availability of credit and the number of sales should show further improvement over the course of 2010."