MORTGAGE lending slumped to an eight-and-a-half-year low during January as the housing market suffered a lull following the end of the Government’s stamp duty holiday, figures showed today.
The major banks advanced just £8.02 billion during the month, 26% down on December’s figure and the lowest level since May 2001, according to the British Bankers’ Association.
The group blamed the fall on a combination of people rushing through purchases during December to beat the end of the stamp duty holiday, and the wintry weather during January hitting market activity.
Lending had been unusually strong during December, with advances totalling £10.92 billion, the highest figure for more than a year, during what is traditionally a quiet month for the housing market.
The rise was attributed to people buying lower value homes pushing through purchases before the stamp duty threshold fell from £175,000 back to £125,000 at the beginning of this year.
