Mortgage market
The mortgage market started the year on the back foot with lending diving by 13 per cent in January, figures showed today. A total of £9.2billion was advanced during the month, down from £10.6billion in December and the lowest level since February last year, according to the Council of Mortgage Lenders.
The fall is likely to have been partly caused by the severe winter weather during December, which prevented potential buyers from going out house hunting.
It also reflects the current subdued state of the market, as a combination of high deposits required by lenders and the uncertain outlook for the housing market and the wider economy suppresses demand.
Mortgage advances were 5 per cent higher in January than they had been in the same month of 2010, the first year-on-year increase since August last year.
But the CML cautioned that lending levels in January last year were distorted by people rushing through purchases in December to beat the end of the stamp duty holiday for lower value properties.
Read more: DailyMail