Mortgage lending in the UK dived by 83 per cent during March, fuelling speculation that the housing market recovery is running out of steam, figures showed today.
Net lending, which strips out redemptions and repayments, fell to just £318 million during the month, down from £1.85 billion in February and the lowest level since July last year, when it was negative, according to the Bank of England.
The low figure is likely to partially reflect the distortions to the market caused by the government’s stamp duty holiday, which led to people rushing through transactions on lower-value properties before the end of last year.
It can also partly be explained by the severe winter weather the country suffered at the beginning of the year, which dented housing market activity, as well as the uncertainty caused by the general glection.
But economists have warned that these factors alone cannot explain the fall in activity seen since the beginning of the year.
Reuters