Mortgage lending hits £1.8 billion in December

Date:Monday 1st February 2010
Author: Max Freedman

Building societies gave out 15 per cent more in gross lending in December last year compared to the previous month, the Building Societies Association (BSA) has reported.

Around £1.8 billion was lent to house buyers by building societies in December, compared to £1.6 billion in November.

Despite the increase being a good sign for the market, the BSA stated that it was probably attributable to a rush of people attempting to beat the end of the stamp duty holiday in January.

Paul Broadhead, BSA head of mortgage policy, said: "Despite this rise, total gross lending in 2009 was only half of that in 2008 and it is likely to remain at low levels until funding conditions improve."

The figures from November were slightly down on the month before, with building societies in October recording gross lending of £1.7 billion.

Annually, the total for gross lending stood at £18.6 billion, far below the £37.5 billion given to lenders in 2008.