Bank of England data showing approvals for purchase loans in January were down 2% on the month but up 20% on the year are in line with an industry group's forecasts for activity to be subdued early in 2010. The Council of Mortgage Lenders said it believes this reflects its forecast for uncertainty about the political and economic outlook as well as the recent end of a previous housing-related tax break. A new tax break for certain buyers "is likely to boost activity in the coming months, although it is extremely difficult to assess how many potential buyers will qualify and what the impact will be," the CML said. Refinancing, in contrast to purchase activity, was up 12% on the month but down 21% on the year.
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