The amount of money lent in UK mortgages rose by 16 per cent to £11.5 billion from February to March, but the figures were down 52 per cent on March 2008

Gross lending figures for the first quarter of this year show that the usual seasonal fall between the fourth quarter and the first of the next year has increased this year, according to figures published by the Council of Mortgage Lenders (CML).

During the first quarter, gross lending was an estimated £33 billion, a 29 per cent decline from the fourth quarter of 2008 and the lowest quarterly lending total since the first quarter of 2001. The decline is usually about 10 per cent.

This indicates that, despite some of the housing market green shoots spotted in the past few weeks, a recovery in the housing market is some way off.

Hopes of a revival in the UK property market were given a fresh boost today as official figures showed that home sales jumped 40 per cent last month. According to HM Revenue & Customs, 60,000 homes worth at least £40,000 each were sold in March.This compares with 43,000 flats and houses that were sold in February, according to HMRC.

Michael Coogan, director-general of the CML, said: “While the market is beginning to show some signs of stabilising, housing transactions and lending are set to remain low for the foreseeable future.

“Today’s Budget does provide the opportunity for action to reinforce the housing market. In particular we would like to see the Government extend and simplify low-cost home-ownership, raise the stamp duty threshold to £250,000 and expand existing support schemes for borrowers in difficulty.”

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