Statistics revealed by the Council of Mortgage Lenders (CML) show that mortgage lending grew in January of 2012 compared to the same month last year, as more property investors aim to take advantage of rising rental values and first-time buyers rush to be the end of the stamp duty holiday.

The CML reports that the value of mortgages taken out in January was £10.5bn. This figure represents a growth on lending for properties for sale of 10% when compared to January 2011.

However, it was also 14% lower than the £12.2bn reported for gross mortgage lending in December of last year, when more people were looking to get on the festive UK property market.

The Council of Mortgage Lenders (CML) reports a rise in first-time buyers in December as they rush to beat the stamp duty holiday deadline of March 24th 2012.

First-timers are still eligible to be exempt from paying stamp duty on a home costing under £250,000, as long as they beat next month’s deadline. After the holiday finishes, those who purchase a property worth more than £125,000 will have to pay 1% of their overall final paid price in stamp duty, equating to up to a maximum value of £2,500 each. The tax rises to 3% if the property costs more than £250,000 to buy.

“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March,” said CML chief economist Bob Pannell.

“Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track.”

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