Gross mortgage lending totalled £23 billion in January - the highest January lending figure on record, according to data from the Council of Mortgage Lenders (CML). This figure is down by 14% on December's £26.9 billion, but is nearly a third higher than the £17.4 billion lent in January 2005.
Lending typically weakens around the start of a new year because house-buying activity slows down between the autumn and spring. But January's figure is still strong because house-buying has remained robust, reflecting consumer confidence in the market and the expectation that interest rates will remain stable.
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".
