Mortgage lending in November reached a decade low as ‘heavily constrained’ demand continues to impact on the property market.
Just £11.1bn was advanced during the month, which was 5% less than in October, and the lowest figure for November since 2000, according to the Council of Mortgage Lenders.
The CML said the sharp year-on-year decline reflected a distortion to the market caused in 2009 by the Government's stamp duty holiday, which caused people buying properties costing up to £175,000 to hurry through sales before year’s end.
CML chief economist Bob Pannell said: 'The fall in gross mortgage lending in November reflects the usual seasonal slowing of activity at this time of year, and reinforces the picture of a continuing flat market.
'Comparisons with the year earlier are somewhat distorted, as some households brought forward house purchase activity into the closing months of 2009 to take advantage of the stamp duty concession.
But both demand for mortgage borrowing and the supply of funds for lending remain heavily constrained.'