UK mortgage lending increased by 14% in December from the previous month, according to data released by the Council of Mortgage Lenders (CML).

Gross mortgage lending reached an estimated £13.7 billion in December, a 14% rise from £12.1 billion in November. This is a 3% rise on December 2008's figures and the first time the annual monthly comparison has been in positive territory since October 2007.

"The December figure is surprisingly strong as there is typically a small decline in the month. Evidence suggests that the rise was driven by a surge in house purchase completions - as remortgaging still remains exceptionally weak," said CML economist Paul Samter.

"The most likely explanation is that buyers of cheaper property wanted to complete their transactions before the end of the year to beat the end of the stamp duty holiday."