Gross mortgage lending beat expectations to reach an estimated £143bn last year, according to the Council of Mortgage Lenders.

December saw an estimated £11.7bn in gross mortgage lending, meaning the total amount lent in 2012 was £10bn higher than the CML had predicted in late 2011 on account of a weaker economic backdrop. It also marked a £2bn increase on the previous year.

CML chief economist Bob Pannell said the lenders’ body was more positive about the UK housing market and the wider economy than a year ago: “A key reason is that lenders currently face few funding pressures, in part reflecting the Funding for Lending scheme.

“House purchase activity was robust in the fourth quarter, on the back of better mortgage availability and pricing, and we expect this to continue over the coming months.”

In 2013, gross lending is likely to reach £156bn, the CML predicted.

Chadney Bulgin mortgage partner Jonathan Clark said: “This is a small, but very significant increase on last year’s figure. I wonder how much the Funding for Lending scheme influenced this?”

Moneysprite director Ashley Brown described the CML forecast for 2013 as a bold statement, dependent on a number of factors working in the market’s favour: “If lenders start becoming more interested in first time buyers again, then the CML prediction may well not be fantasy-land.

“This year is a critical one for the mortgage market after suffering a few years in the doldrums. The likelihood is that we will see improvement on last year, but nothing miraculous.”