Mortgage lending continues to rise

Mortgage lending continued its year-on-year rise in December, which marked the fifth month in a row that more cash was made available to homebuyers.

An estimate put the sum lent at £11.7 billion, which is 12 per cent less than the previous month but still 12 per cent higher than December 2010.

The Council of Mortgage Lenders (CML) said the drop compared with November was amplified by the fewer number of working days in the month, as people took time off for the Christmas holidays.

Despite the upward trend witnessed at the end of 2011, which saw overall lending hit £140 billion - above forecasts and three per cent higher than 2010 - the trade body warned that prospects for the housing market in 2012 are "difficult to call".

CML chief economist Bob Pannell said the continuing eurozone problems would have an impact on the UK market, meaning that mortgage funding prospects are "uncertain".

Copyright Press Association 2012