In what can only be described as a dramatic drop in new mortgage lending in January 2010, it appears to be the return of stamp duty that has put the boot in.

The CML (Council of Mortgage Lenders) have reported a 32% drop in lending from £13.4 billion in December 2009  to £9.1 billion in January 2010.

Now you might think this is a seasonal drop, but shockingly it’s not. In January 2009 gross mortgage lending was at £11.5 billion 21% higher than the £9.1 billion in Jan 2010.

These figures are quite shocking considering we are being told that more loans and mortgages are now being granted. It now appears to be harder than ever to get a foot on the housing ladder as a first time buyer, and that the ”lots of new lending” headlines are a load of rubbish.

If a 1% stamp duty holiday can have this much of an effect on the volatile property market then bring it back NOW. What’s more worrying is that we don’t appear to have any policy statements from the tories or labour as to how we are going to ease the lending drought over the coming years.

It certainly looks like we are all going to have to continue to walk the mortgage tight rope for the forseeable future, now where is that government sponsored balancing bar?

Your Trumpo.

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