Gross mortgage lending up 21% in March

by Aaron Strutt

Apr 21 2011

Gross mortgage lending was an estimated £11.3 billion in March, a 21% rise from £9.3 bn in February, according to figures from the Council of Mortgage Lenders.

But gross lending still registered a 2% decline compared to the £11.5 bn in March 2010.  Gross lending for Q1 2011 was therefore estimated at £30.1 bn, an 11% decline from Q4 2010 -£33.9bn – and a 1% increase from £29.7 bn in the first three months of 2010.

Bob Pannell, chief economist at the CML, says: “The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure, and as a result demand for house purchase loans fell in the first three months of 2011. Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels.”

April 21, 2011