Data from UK Finance show that the value of residential gross mortgage dropped 1.5 per cent on a yearly basis this January.
In total, £21.6bn was lent during the first month of 2019, compared to £21.9bn in January 2018.
There was growth of 1.8 per cent when measured on a monthly basis, however, with gross mortgage lending in December 2018 at £21.2bn.
The number of purchase approvals in January 2019 came in at 29,159 as compared to 28,739 a year previous – an annual increase of 1.5 per cent.
On a monthly measure there was 11.5 per cent growth thanks to December 2018’s purchase approval figure of 26,145.
In terms of remortgage approvals, January 2019 saw 23,618 completed compared to 24,384 during its 2018 counterpart, giving a yearly fall of 3.1 per cent, but over the month this grew by 14.4 per cent, with December 2018’s count coming in at 20,653.
Phoebus Software sales and marketing director Richard Pike comments: “We are not very often surprised by the figures these days, and to be honest the picture the figures paint for January is probably more encouraging than we might have hoped.
“Unfortunately, there is nothing going on in Westminster or in Europe that is helping to alleviate the situation, and neither will it for some time.”
Landbay chief executive John Goodall strikes a similar tone when he says: “This dip in lending is unquestionably linked to homeowners and landlords putting off the decision to put their property on the market. This ‘wait and see’ approach, entirely understandable in the current economic climate, is exacerbating the chronic undersupply of available housing.”