CML: Mortgage lending down in December

CML figures explained that there was a 12 per cent drop in lending, falling from £13.2 billion in November. However, the figure still marks a 12 per cent rise on December 2010 (£10.5 billion), and December marked the fifth month in a row where there was higher year-on-year lending.
 
During the entirety of the fourth quarter of 2011, the total value of mortgage lending amongst first time buyers, those with landlords insurance and other buy-to-let specialists came to an estimated £37.3 billion, falling from £39.2 billion in the previous quarter. Nonetheless, it managed to be 11 per cent higher than the closing three months of 2010 (£33.6 billion).
 
CML chief economist Bob Pannell said that the last months of 2011 signalled stronger mortgage lending activity and housing transactions, yet "short-term economic prospects are challenging".
 
He continued: "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."