David Dooks Quotations

Seasonally adjusted net mortgage lending fell back to around the recent trend in January and the level of approvals, in particular for equity withdrawal, held up well in what is traditionally a slow month.

But they are by no means yet approaching the levels of activity seen in 2004.

Whilst partly reflecting the high number of working days in the month, the approvals numbers show that mortgage activity is running at a higher level than at this time last year, although the market is still somewhat short of the heady times of 2004.

Weaker mortgage lending in the first half of 2005 led to annual totals weaker than in 2004, but gross lending and loans approved for house purchase finished the year on an upward trend, after allowing for seasonal factors.

Behind these monthly fluctuations, mortgage lending is on a stable trend, though not as high as 2004 levels.

The underlying rise in mortgage lending was close to trend in January, suggesting stronger growth towards the end of 2005 may not have established a sustained upturn in lending.

The comparative weakness of the mortgage market in the first half of last year means that current indicators of activity, i.e. gross lending and approvals, are much stronger than they were 12 months earlier when the housing market was somewhat subdued, but they are by no means yet approaching the levels of activity seen in 2004.