Total gross lending in February hit £17.2 billion, according to the latest data from the Council of Mortgage Lenders (CML), virtually unchanged from January’s figure of £17.3 billion but 18 per cent lower than in February last year (£21.1 billion).
Peter Williams, deputy director-general at the CML, said: “The mortgage market in February was predictably flat. The CML expects to see some pick-up in activity during the Spring, although neither transactions nor price increases will reach last year’s levels.”
The Building Societies Association (BSA) has also reported a quiet month, with net advances down from £1,200 million in February 2004 to £602 million in February 2005.
Brian Morris, head of savings at the BSA, said: “These figures show the slowdown in the housing market is continuing, confirming expectations of a quiet start to 2005. A slight pick-up is expected but we are not likely to see lending levels as high as in the last two years.”
However figures from the British Bankers’ Association show that total sterling lending figures are slightly stronger in February. Net mortgage lending accounted for £4.8 billion of the rise, compared to January’s rise of £4.2 billion.
The Rightmove House Price Index for March has reported the number of properties coming onto the market is almost twice those coming off, the biggest imbalance in three years.
110,000 new sellers have been added to the growing over-supply as stock levels per estate agent rose 6 per cent to stand a third higher than a year ago.
The National Association of Estate Agents (NAEA) has reported a flat housing market.
Richard Hair, president of the NAEA, said: “The data shows house prices have stabilised, but with month-on-month changes once again positive and the balance returning to the market, an Easter revival seems almost certain.”
