According to the Council of Mortgage Lenders, (CML) gross mortgage lending in December 2011 was an estimated £11.7 Billion (GBP).
That is still 12% short of the £13.2 Billion (GBP) recorded in November 2011 but is actually up 12% when viewed on a year-on-year basis.
In fact UK mortgage lending increased to around £140 Billion (GBP) in 2011, compared with £136 Billion in 2010 and December 2011 was the fifth month in a row to show annual growth in mortgage lending, with 2011′s fourth quarter total of £37.3 Billion (GBP) up 11% on the final 3 months of 2010.
However, the CML expects the UK housing market to experience a weak first half of 2012 and warns that the increase is from a low base with challenging economic prospects,.
The Eurozone crisis, higher funding costs for lenders and the troubled state of household finances are all likely to impact on the UK housing market.
Bob Pannell, CML’s Chief Economist, said “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.”
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