The CML reports that the value of mortgages taken out in January was £10.5bn. This figure represents a growth on lending for properties for sale of 10% when compared to January 2011.

However, it was also 14% lower than the £12.2bn reported for gross mortgage lending in December of last year, when more people were looking to get on the festive UK property market.

The Council of Mortgage Lenders (CML) reports a rise in first-time buyers in December as they rush to beat the stamp duty holiday deadline of March 24th 2012.

First-timers are still eligible to be exempt from paying stamp duty on a home costing under £250,000, as long as they beat next month’s deadline. After the holiday finishes, those who purchase a property worth more than £125,000 will have to pay 1% of their overall final paid price in stamp duty, equating to up to a maximum value of £2,500 each. The tax rises to 3% if the property costs more than £250,000 to buy.

“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March,” said CML chief economist Bob Pannell.

“Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track.”

The average price of a residential property is £175,020, which is around 1.5% lower than the average home price throughout 2010 and broadly flat compared to 2011.

But there are signs that demand for properties is growing, reflected by greater activity in the mortgage sector.

A total of 52,939 mortgage approvals were transacted in December 2011, which is 24.5% higher than the same month a year earlier. However, mortgage approvals are still some 50% below levels reached during 2007.

Lower registered house prices compared to last year are particularly poignant as December 2010 was fraught with disrupted economic activity and poor weather conditions. In contrast, December 2011 was comparatively mild in terms of weather, although uncertainty from a Eurozone crisis had reached its peak during this time.

The methodology behind the Poll of Polls is unique in that it uses all of the major national house price and asking price indicators and weights their results according to the historical accuracy of the various indices. It also captures all residential properties, rather than only those which have been sold or are for sale, by incorporating the stock of residential properties in England and Wales.

The PoP, therefore, provides a more complete analysis of house prices than most other measures of house price movements, which only tell part of the story as they are based on a single set of data.

Robert Bartlett, Chesterton Humberts’ CEO, comments: “Although the market remains sluggish, the four traditional drivers of property sales ensure that transactions continue to take place. Thankfully, due to continuing low interest rates, debt is less of a sales driver than it has been in previous recessions but death and divorce are unfortunately always with us. Downsizing can be quite a relief to homeowners longing for freedom from having to maintain a property too large for their current needs.

“The fact that house prices are lower in many parts of the country compared to last year is particularly poignant as December 2010 was fraught with disrupted economic activity and poor weather conditions. This year, by contrast, December 2011 was comparatively mild in terms of weather, although uncertainty from the Eurozone crisis had reached its peak during this time.

“London remains ahead with house prices on an annual basis 3.9% higher in January 2012 compared to a year earlier. The South East is the only other region where prices are higher compared to last year – a meager 0.2% higher compared to last year.”

The company says that it is witnessing extraordinary levels of competition between domestic and international buyers for the limited property for sale, while demand remains close to record high levels.

Particular hotspots, such as Chelsea and South Kensington, have seen such strong demand from buyers that deals are being agreed within hours of a property coming onto the market, often after just one viewing.

Furthermore, some homebuyers, frustrated by a lack of options, are agreeing to pay a premium above the asking price in order to secure a home on a specific road.

Two flats Cluttons recently sold on South Kensington’s Onslow Square went to sealed bids, resulting in deals being agreed in excess of £100,000 above the asking price. This demonstrates the underlying confidence in the London market, reflecting buyer belief that values will continue to appreciate.

Charlie Noel-Buxton, partner for residential sales at Cluttons, said: “House hunters in prime central London, starved of options, are going to great lengths to secure a property when it comes onto the market, particularly those on the most desirable roads.

“We believe registered demand underestimates the underlying level, with new instructions attracting a rush of applicants who aren’t registering with agents until they see a property they like. It’s a seller’s market, and those who need to sell this year can expect to benefit from a lack of competition from other sellers, combined with near record levels of buyer interest.”

The research looked at 1,226 apartments across six recently completed residential towers in London.

Strata in Elephant and Castle recorded the biggest premium of 68.4% above the local embedded value, followed by Pan Peninsula in Canary Wharf at 57.1%. However, the uplift in Pan Peninsula is arguably more impressive given the larger number of comparable schemes in the vicinity.

The biggest floor price premium was at Altitude 25 in Croydon with the smallest difference seen at The Land Mark and Discovery Dock, both in Canary Wharf. On the whole, floor price premiums varied within a fairly narrow range from 1.3% to 2.2%.

Jennet Siebrits, Head of Residential Research, CBRE, said: “Unlike the high rise blocks of the 1960s, tower developments now symbolize luxury living and can add substantial value. They have been designed by famous architects to be provocative and iconic in a way that enhances their brand.

“The resurgence over the last 10 years has recently accelerated because demand from South East Asian investors has become a driving force in the market. Attributes like view, aspect, privacy and exclusivity are all enhanced by storey height and as result apartment pricing increases from floor to floor.

Domestic property investors have been cashing in on rising rental yields by actively adding to their buy-to-let portfolios, while more international investors have been snapping up homes in the UK, particularly in London, with a view to providing a solid rental income.

Figures supplied by the Council of Mortgage Lenders reveals that there was a 40% rise in the value of mortgage lending last year, with the number of buy-to-let loans also increasing by 32%.

The number of buy-to-let mortgages reached almost 35,000 in the fourth quarter of 2011, which is not dissimilar to levels reached in Q3 2011 (34,300).

A Q4 FACT survey conducted by buy-to-let specialist Paragon Mortgages found an increase in buy-to-let business in Q4 2011. 42% said that the most popular reason for landlords obtaining a buy-to-let mortgage was to extend their portfolio and 33% was for remortgaging cases. Of those intermediaries surveyed, 53% expect to write more buy-to-let business in 2012 which would suggest that there will be further substantial growth in the sector this year.

John Heron, Managing Director of Paragon Mortgages, commented: “We should be clear though that this does not signal a return to the boom conditions we saw in 2006 and 2007, but buy-to-let is making huge progress and we are seeing solid, steady levels of growth. 2012 will be another interesting year for the buy-to-let market, and we need to continue to build on the success of 2011.”

Independent research commissioned by specialist buy-to-let lender Paragon Mortgages, has revealed that rental property in the East Midlands generated an average yield of 6.4% during the fourth quarter of 2011.

The South East – excluding London – came in second place with a yield of 6.1%, which was followed by the South West which generated a yield of 6%. The high yields generated in the South reflect the strong level of demand in these areas for rental property.

Yields, a property’s annual rental income as a proportion of its current value, are an important factor for landlords when making a property purchase decision.

Paragon Mortgages worked with independent researchers BDRC Continental in conjunction with the NLA, to survey more than 500 landlords – a percentage of which are Paragon Mortgages and Mortgage Trust customers – during the last quarter of 2011.

Paragon customers who took part in the survey reported an average yield of 6.9% for Q4 – higher than the market average of 5.9%.

The survey also revealed that the highest yielding property type is a detached house, generating an average yield of 6.6%. This was followed by terraced houses and HMOs (House in Multiple Occupation) which generated yields of 6.1% and 6.0% respectively.

John Heron, managing director of Paragon Mortgages, said: “The yield a landlord’s rental property generates is a key indicator of how well the property is performing and is an essential part of the landlord’s overall business plan.

“It is interesting to see the shift in the regions that are taking the top spots in the yield table and the fact that the East Midlands took first place from the West Midlands.

“As we progress into 2012 I suspect we will continue to see changes in yield patterns and how different regions fair against each other, with demand still at a peak I believe landlords will continue to achieve healthy yields in the coming months.”

With a general shortage of rental homes in London, supply is failing to keep pace with rising tenant demand, fuelled in part by stringent mortgage lending conditions preventing many would-be homebuyers from purchasing a home and forcing them into rental accommodation instead.

According to Cluttons, rental values in London are now 10.3% above the market peak in Q1 2008. But further falls are expected into the spring, as the spike in prices witnessed last year, as a result of a serious shortage of supply, readjusts.

Lack of promotion and nervousness over job prospects in the City has lead to increased price sensitivity among tenants and, consequently, greater flexibility from landlords, who are keen to keep good quality tenants in place and minimise void periods.

Some Prime Central London landlords are adjusting their expectations and accepting lower offers. There has also been an upturn in the number of sharers around the capital who are looking to contain costs while benefiting from living in central locations, such as Hyde Park.

Lynn Hilton, Partner for Residential Lettings at Cluttons, said: “The remarkable growth in rental values seen last year could not continue and this correction in values will bring the market back to a more stable level. While there is considerable economic uncertainty, we don’t anticipate a drastic reduction in rents as demand is still high, but tenants will undoubtedly welcome increased choice and negotiating power.”

The estate agent reports that it sold about 40% of its prime housing stock in 2011 to foreigners attracted to the city’s reputation as a cultural hub, thriving technology sector, the outstanding education on offer and the lure of the University colleges.

The sales success recorded in Knight Frank’s Oxford office shows that London is not the only part of the country to attract investment from international property buyers.

Damian Gray, partner at Knight Frank and Head of the Oxford office, comments: “London is not the only city to see a dramatic influx of foreign buyers. The UK is still internationally perceived to be a safe economy and, combined with a weak sterling, this has led to a significant increase in foreign buyers in Oxford over the last year.

“Providing an interpreter is now part of our weekly business, with overseas buyers becoming extremely focused. If they see something they like and it adds up, they make very fast decisions and look to close a deal quickly with little borrowings.”

Having historically weathered economic storms very well, Oxford has always been a popular choice for both domestic and overseas buyers. However, in the last two years, Knight Frank’s Oxford office has seen sales to international applicants rise by 50%, with the strongest demand for houses valued at over £2.5m and a marked increase in buyers from Asia and Russia.

Developer Marcus Cooper Group will work on the project in Wandsworth, which will also include a range of commercial and retail units, as well as leisure facilities.

Marcus Cooper Group will also invest a significant sum of money towards the local infrastructure and transport improvements such as an expansion of the Barclays Cycle Hire Scheme and upgrades of two new Northern Line stations.

Transport and infrastructural projects on a large scale presents property investors with a good opportunity to cash-in on the improvements made to the area.

Cllr Nick Cuff of Wandsworth Council said: “This scheme would create hundreds of new homes and provide almost £12 million towards improving local services and infrastructure.

“Nine Elms has begun to transform on an enormous scale. Building work is already underway on several major schemes and more planning applications will soon be coming forward.

“The Government’s commitment to extending the Northern Line has reinforced investor confidence and it won’t be too long before a new residential and business district has taken shape.”

The regeneration scheme could eventually feature up to 16,000 new homes.

Many of the new build homes at Nine Elms are expected to be made available to buy during the off-plan stage of construction. There are signs that demand for off-plan properties is improving particularly in London.

London-based house builder Telford Homes for instance, recently reported a sharp rise in off-plan sales at its London-based new homes developments.

There was a major fall in the previously buoyant off-plan market following the housing market crash in 2008, with buyers from Asia dominating this sector of the market in the past three years. But with property market conditions continuing to improve in London, confidence among British buyers, particularly property investors, appears to be improving.

Jon Di-Stefano of Telford Homes said: “We see the main strength of the residential property market being in the capital and so we will be developing more new homes in London.”

The data from LSL, which owns lettings agents including Your Move and Reeds Rains, shows that the average cost of renting a home depreciated by 0.8% to £711 a month in December compared to the previous month.

Rents fell in all regions except for Yorkshire and the Humber, the West Midlands and the East Midlands, the LSL survey shows.

But despite the slowdown, the cost of renting has increased over the past year, on the back of higher demand from tenants, with average rents having increased by 4% since December 2010.

“The rental market was sheltered from the full impact of the seasonal lull by the strength of underlying tenant demand as many prospective renters took the opportunity to move in the run-up to Christmas at a time when the market is traditionally less competitive,” said David Newnes, director of LSL.

However, there is growing evidence to suggest that more tenants are struggling to keep up with their rental payments, with more renters falling into rent arrears over the Christmas period.

LSL found that 10.7% of all rent was late or unpaid at the end of December, compared with 9.3% in November.