Mortgage lending rose in January according to the latest figures from the Council of Mortgage Lenders (CML).

Gross lending reached £26.5 billion last month, 11 per cent up on December 2007.

December’s numbers were 25 per cent down on November - the lowest since May 2005.

“Gross lending held up well in January. However, there is considerable uncertainty in the housing market at the moment and we expect lending volumes to be lower in the coming months,” said CML director general Michael Coogan.  

“Home buyers might be more inclined to transact if their moving costs were reduced and the government has the opportunity to address this by raising stamp duty thresholds and cutting the rates of stamp duty in next month's Budget.”

The CML warned that gross lending volumes were likely to fall in the coming months, and expected demand for remortgaging to be stronger than for purchases in the short term. - fdbcvbxvc