The Council of Mortgage Lenders (CML) estimates that total gross mortgage lending declined to £10.4 billion in January.

This is 9% lower than December's gross lending figure of £11.4 billion and a 3% fall from £10.7 billion in January 2012.

Commenting on market conditions in this month's market commentary, CML market and data analyst Caroline Purdey said: "Housing sentiment remains positive, despite ongoing economic pressures. A worsening in the outlook for inflation presents a greater headwind, but we still expect the funding for lending scheme to lift activity over coming months.


"House purchase activity was robust into the start of 2013, on the back of better mortgage availability and pricing, and we share the Bank of England’s confidence that this will continue over the coming months."

(CD/GK)