New figures have revealed that gross mortgage lending rose by 14 per cent last month, aided by a rush in completions on new homes.
The Council of Mortgage Lenders (CML) said that lending amounted to an estimated £13.7 billion in December, up from £12.1 billion in November.
Paul Samter, economist at the CML, said: "The most likely explanation [for the rise] is that buyers of cheaper property wanted to complete their transactions before the end of the year to beat the end of the stamp duty holiday."
He added that despite the possibility that there had been a "bunching of sales" due to stamp duty, there is "every reason to expect a gradual improvement in the latter part of the year".
The new totals are the most positive since October 2007, indicating that home buyers are feeling more confident about the market.
It was also reported that mortgage credit is more easily available and that banks are offering a wider range of products for home buyers in response to the economic climate.
London and the south-east are predicted to lead the property market recovery in 2010.
See Also: Property News (6699)
Date Published: 21 January 2010
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