NET mortgage lending in Britain increased in January to its highest level since September 2022, while mortgage approvals declined slightly but remained above expectations, according to Bank of England data released on Monday.

Lending rose to £4.207 billion in January from £3.343 bn in December. This was the highest level since September 2022, when financial market turmoil followed the economic plans of then-prime minister Liz Truss. The figure was also higher than the £3.55 bn forecast in a Reuters poll.

Mortgage approvals for house purchases, a key indicator of future lending, fell to 66,189 in January from 66,505 in December, a smaller decline than the expected drop to 65,650 in the poll.

The upcoming end of a temporary stamp duty land tax reduction at the end of March is likely to have contributed to increased activity in the mortgage market.