Buyers’ rush puts up home lending

Gross mortgage lending was around £13.4bn, the CML said, representing a 30 per cent rise from £10.3bn in February and a 17 per cent increase from March last year. The concession on stamp duty – which meant first-time buyers were free from the one per cent 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.”