Lending for houses boosted by Stamp Duty deadline

Gross mortgage lending in March was an estimated £13.4 billion, according to the Council of Mortgage Lenders. This represents a 30% rise from £10.3 billion in February and a 17% rise from March 2011 (£11.4 billion).

This is the highest monthly total since September 2011 (£13.6 billion) and the highest monthly total for March since 2008 (£23.9 billion).

Gross lending for the first quarter of this year was therefore an estimated £34.4 billion, down from £37.8 billion in the previous quarter but a 13% increase from the first three months of 2011 (£30.3 billion).

In today’s CML market commentary, CML chief economist Bob Pannell comments:

“The increase in our March lending estimate appears to be almost entirely due to stronger house purchase activity. The most likely explanation is that buyers wanted to complete their transactions before the end of the stamp duty concession on 24 March.

“The underlying picture for house purchase activity has been relatively buoyant in recent months. However, we would be surprised if we did not see a drop in transactions over the next few months, following the end of the stamp duty concession, especially as it will take some while for NewBuy transaction levels to build.”

Alec Hanson



Related posts:

In which city are you likely to get the most for your money?
nvesting in a property is a huge step and it is only made more difficult by the uncertainty in the h...
Strong yearly growth in mortgage lending continues
The Council of Mortgage Lenders data release today shows. Dip in mortgage lending in February, howev...
Tory peer slates his party's attack on buy to let investors
Lord Flight, the Tory peer has urged his party to re-think their 'sudden attack' on buy to let inves...