Gross lending was however 2% higher than the total of £10.0bn lent in April 2011.
Bob Pannell, chief economist at the CML, said: “Mortgage lending activity has been relatively buoyant in recent months with stronger lending for house purchase underpinning the more upbeat lending picture.
“The underlying picture is likely to be a bit stronger than the April figure suggests because some first-time buyers are likely to have brought forward their transactions to March to take advantage of the stamp duty concession that was coming to an end.”
Pannell added that eurozone developments were highly uncertain and had the potential to undermine UK economic prospects and conditions in the housing and mortgage markets.
He said: “The underlying picture is likely to be one of easing momentum in the housing market but with potential for a sharper downwards correction on bad eurozone news.”
David Brown, commercial director of LSL Property Services, said: “While the annual figures reflect how far the mortgage market has come in the last 12 months, they should not mask the underlying weaknesses in the present market, which are undermining the short-term prospects for growth in mortgage lending.
“Lenders face increasing funding costs as a knock-on effect of the eurozone crisis. On top of this, concerns over the recessive economy and the potential for a weakening labour market are eroding their confidence in higher loan to value lending to first-time buyers.
“As a direct result, tenants looking to buy are likely to face even longer in the private rented sector while they save for substantial deposits pushing up demand for rental accommodation and driving rent increases.”
