23 April 2012
Mortgage borrowing surged last month, as house buyers rushed to avoid a hike in stamp duty.
Gross mortgage lending shot to £13.4 billion in March, according to the Council of Mortgage Lenders, up from £10.3 billion in February. The UK public has not borrowed more in a single month since 2008.
Yet analysts poured cold water on hopes that this spike in borrowing represents a sign that the ailing British housing market is returning to strength, pointing out that the Government’s two-year stamp duty concession for first-time buyers ended on March 24.
Mark Dyason, director of Edinburgh Mortgage Advice, said: “Expect the April data to show a big drop-off in activity levels, as the mortgage market falls back to earth with a bump.”
