Mortage lending hits six-month high

A clamour to beat the deadline on the stamp duty concession drove mortgage lending to a six-month high in March.

The Council of Mortgage Lenders (CML) revealed the figures today and said gross mortgage lending was around £13.4 billion, representing a 30% rise from £10.3 billion in February and a 17% increase from March last year.

The concession on stamp duty - which meant first-time buyers were free from the 1% stamp duty on homes costing under £250,000 - ended on March 24.

A NewBuy scheme was introduced by the Government, in which lenders and the Government underwrite a mortgage secured on a new-build house or flat.

CML chief economist Bob Pannell said: “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.”