Gross mortgage lending hits £16.5bn in March

Gross mortgage lending for the first quarter of this year was therefore an estimated £44.9 billion. This represents a 12% decrease from the last three months of 2014, and a 3% decrease on the first quarter of 2014.

CML chief economist Bob Pannell observes: "The underlying lending picture is stabilising. Sentiment and activity are showing early signs of improvement, and should be further supported by the effects of stamp duty reform. We expect to see lending strengthen over the next few months, albeit from a relatively sluggish start in 2015.”

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments: “The latest data from the CML suggests that housing activity is back on track. The fall in February was not unexpected given the seasonal slowdown, but it is encouraging to see that lending has risen 21% over the month to stand 7% higher than in March 2014, particularly as the first half of 2014 was exceptionally strong relative to the previous two to three years.

There has been chatter in the market about the upcoming election putting the brakes on housing activity, but there is still appetite in the market for lending, and consumer demand has also held strong. Mortgage rates continue to fall, and the latest sub-2% five year fixed mortgage suggests even better deals are yet to come.

Recent figures from HMRC show that the number of housing transactions rose above 100,000 for the first time in four months in March: this should have a knock-on effect on mortgage completions, leading to further growth. However, with housebuilding levels still trailing behind consumer demand, long-term growth could be stunted if this imbalance is not addressed.”

Peter Rollings, CEO of Marsh & Parsons, comments: “March’s gross mortgage lending figures show a market awakening from its winter hibernation and emerging into a spring full of promise. The significant increase from February’s activity is welcome enough, but it is the year-on-year figure that is even more encouraging when you consider how strongly the property market began 2014.

With only a fortnight to go until the General Election, buyers and sellers will soon have a more concrete idea of what the future holds for the property market and will be able to act more decisively. Factor in other considerations such as attractive mortgage rates and the fact that late spring into early summer is traditionally a busy time for the property market and the outlook is rosy.”