The dramatic fall in home sales caused by the economic downturn in the UK, with its consequent lack of business for conveyancing solicitors and others involved in property buying and selling, has been confirmed by official figures from the Council of Mortgage Lenders (CML).

Mortgage lending has fallen to its lowest rate since 2000 with the £136 billion handed to house purchase lawyers on behalf of clients in 2010 representing a 5% drop on the previous year's funds for home-owners.

The CML said that mortgage approvals in December 2010 were a 21-month low of 40,000 transactions – gross lending of £11billion – which was 18% down on 12 months earlier.

Although some economic analysts can see reasons for the marked contrast between the December figures, such as the particularly cold weather in 2010 and extra sales in 2009 prior to stamp duty changes, they offer few reasons for optimism of a recovery at present.

The Bank of England is predicting further falls in demand for home purchase finance in the first three months of 2011.

In a bleak prediction for conveyancing solicitors, who had hoped for a spring fillip to the housing market, the CML said rising inflation and anticipated interest rate increases could further pull down consumer activity.