The British Bankers Association stated on Monday that underlying mortgage lending rose by 4.6 billion pounds in January, down from 5.3 billion pounds rise in December.

The underlying British mortgage lending growth eased in the month of January but was a little below than its average.

According to British Bankers Association (BBA), even though the mortgage lending rose by 4.6 billion pounds in the month of January, down from 5.3 billion pounds in December but it was slightly below of the six month average of 4.7 billion pounds.

But the Building Societies Association (BSA) had a different story to tell. According to BSA the value of mortgage approvals i.e. loans agreed but yet not made were the highest in the past two years at 4.3 billion pounds in January.

The Council of Mortgage lenders on Monday stated that the in January the gross mortgage lending stood at 23 billion pounds. The highest lending figure for January on record beating the past figure of 17.4 billion pounds lend in January 2005.

Many analysts feel that the current buoyancy in the property market would continue to accelerate in the following months. This is something the Bank of England would be keeping a close eye on. Many feel the rate cut made by the Bank of England last August to 4.5% has played a major role in reviving Britains property market.

A property survey has indicated that the asking price for British homes has had their strongest monthly gain in the past two years from January to mid February, breaking the past average of 200,000 pounds.

Expert opinion:

Mortgage lending growth has eased out at the start of the year itself and is expected to continue. Plus mortgage lending has been strong in all categories which reflect the confidence the British have about the future of housing market and its prices.