Election unease dampens mortgage lending

Kathryn Hopkins
The Times
 File photo dated 13/02/12 of a man looks through an estate agent’s window in Glasgow, Scotland, lending was 10% higher than a year ago during January as first-time buyers rushed to complete deals before the end of a stamp duty amnesty. PRESS ASSOCIATION Photo. Issue date: Monday February 20, 2012. The Council of Mortgage Lenders (CML) said its year-on-year figures improved for the sixth month in a row after its members lent ý10.5 billion in January. See PA story ECONOMY Lending. Photo credit should read: Danny Lawson/PA Wire
 File photo dated 13/02/12 of a man looks through an estate agent’s window in Glasgow, Scotland, lending was 10% higher than a year ago during January as first-time buyers rushed to complete deals before the end of a stamp duty amnesty. PRESS ASSOCIATION Photo. Issue date: Monday February 20, 2012. The Council of Mortgage Lenders (CML) said its year-on-year figures improved for the sixth month in a row after its members lent ý10.5 billion in January. See PA story ECONOMY Lending. Photo credit should read: Danny Lawson/PA Wire
DANNY LAWSON/PA
Kathryn Hopkins
The Times

Mortgage lending slumped by almost 10 per cent in February as would-be buyers hold off amid jitters surrounding the forthcoming general election.

Gross mortgage lending reached £13.4 billion in February, 9 per cent lower than in both January and the same month last year, according to the Council of Mortgage Lenders. This was the lowest figure since April 2013.

This followed figures out earlier this week showing that lending to first time-buyers fell by 27 per cent between December and January, despite the introduction of reduced stamp duty for cheaper homes.

However, analysts believe that the slowdown reflects nervousness in advance of the general election and say that borrowing will recover after May when there is more certainty.

They predict that buyers will then take