After being dragged down for the last four month, the mortgage lending has touched a low level which is the least that it has reached in nearly a decade.

While the, annual lending has shown a decrease of 5 per cent to be at £136 billion in 2010. This is lowest level that has been reached since £120 billion level was touched in 2000, showed the data collected by the Council of Mortgage Lenders (CML).

Even for the month of December the gross lending was 6 per cent less than the previous month.

And the reason for the same can be seen in the January Lending Report published by the Bank of England. Here it was said that the housing sector had been battling it out for a growth figure. The bank said that the mortgage has touched a 21-month low figure of 40,000 in December.

What is worrying is the fact that the Credit Conditions Survey has predicted that the situation will continue to be the same even in 2011.

Rising inflation combined with increasing interest rates in the factor that os dragging down the demand.