The end of the year data for gross mortgage lending reveals that from November to December there was little change, while in comparison to the previous year December had a decline of 1%. The Council of Mortgage Lenders data shows that in the last three months of 2014 the gross lending estimate was £51.6 billion. Compared to the previous quarter there is a decline of 8%, but compared to the same time period the previous year there is a 1% increase.

Gross lending for 2014 is estimated at £205.6 billion, this is an increase of 17% over the £176 billion recorded in 2013. It was the strongest mortgage lending year since 2008.

Bob Pannell, CML chief economist, said, “Housing market activity has been cooling and house price growth slowing in recent months, but 2014 was still the strongest year for mortgage lending since 2008.

“First time buyers were a key driver, helped by government initiatives such as Help to Buy. As a result, the number of first time buyers topped the 300,000 mark. While a far cry from the half million that we might regard as normal, this was the highest number of first time buyers since 2007.

“Although lending remained muted in December, the previous monthly pace of decline in approvals appeared to moderate. So, alongside the big picture of a softer market, we are beginning to detect signs that underlying market conditions may be stabilizing.”

The demand for the first quarter of the year is expected to pick up slowly as lenders continue to offer attractive low interest rate remortgages and mortgages in a competitive market.