LONDON (MNI) – Gross mortgage lending was up sharply in March on a
year ago, boosted by the looming expiry of the stamp duty holiday,
according to Council of Mortgage Lenders data.
Unadjusted March gross mortgage lending climbed to Stg13.4 billion,
up from Stg10.336 billion in February and 17.2% higher than the
Stg11.429 billion in the same month a year ago. The March outturn was
the highest since the Stg13.637 billion recorded in September 2011.
The looming removal of the stamp duty, or property transaction tax,
holiday has driven housing market activity higher, creating the risk of
a deceleration in April.
CML chief economist Bob Pannell said “The most likely explanation
is that buyers wanted to complete their transactions before the end of
the stamp duty concession on 24 March.”
“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,” Pannell added.
The CML data are based on mortgage advances, the loan actually
provided to a borrower. The headlines from Bank of England and British
Bankers Association mortgage data are the more forward-looking mortgage
approvals.
–London bureau: +4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$]
