23 April 2010

The Council of Mortgage Lenders (CML) has warned that the housing market still remains “quiet and subdued”, despite reporting a rise of 24% in mortgage lending for March.

Mortgage lending rose to £11.5billion in March, compared with £9.3billion the previous month. This represents a 3% increase year-on-year.

The CML have attributed these figures with the traditional Spring increase in activity, as home buyers and sellers look to move in time for summer and before the new school year.

Paul Samter, CML economist, commented: “Housing and mortgage activity remains subdued, but is comfortably higher than the depths of the recession a year ago. Despite the increase in activity late last year and a subsequent fall early this year – due to the end of the stamp duty holiday – the underlying position looks to have barely changed.”

Samter exclaimed that he expects to witness a steady improvement in market conditions towards the end of the year but that the there will continue to be restricted funding available for the housing market, which may limit the speed of recovery.

Source: Financial Times

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