Gross mortgage lending is ten per cent higher than a year ago, according to latest figures. Lending was higher last month than the total of £9.5 billion in January 2011, according to the Council of Mortgage Lenders (CML).

And last month was the sixth month in a row of higher year-on-year lending.

Dave Smith, Barclays retail area director for Gloucestershire said mortgage activity across Gloucestershire had been strong last year.

"We expect to deliver similar levels of activity and mortgage completions for 2012," he said.

"Back in the summer months we saw the CML increase its gross mortgage lending forecast for 2011 from £135 billion to £140 billion. It also predicted gross mortgage lending of £150 billion in 2012."

The continuation of low interest rates and the gradual easing of lending restrictions by financial institutions have seen many buy-to-let investors return to the marketplace to expand their portfolios.

All four of CGT Lettings' offices in Gloucestershire have been busy with enquiries for rental property.

The residential letting and property management company had a strong end to last year and this continued into January with a record number of lets being recorded. The agency's managed portfolio increased by 5.64 per cent last year on the previous year, with new landlords coming into the market.

"During the last 12 months we have seen a gradual increase in enquiries from buy-to-let landlords, both existing and first time in vestors," said managing director David Baker.

The number of first-time buyers, who are exempt from paying stamp duty on properties up to £250,000, have also increased. There were 18,700 loans advanced in December, worth £2.3 billion, up seven per cent by volume and 10 per cent by value, from November. The stamp duty holiday ends on March 24.

CML chief economist Bob Pannell, commenting on the latest figures, said: "Housing and mortgage market sentiment has improved a little over recent weeks.

"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.

"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."