There was a decline in mortgage lending in the month of April according to data from the Council of Mortgage Lenders (CML).  The fall recorded for the time period between March and April was at 30% with only 36,000 mortgage loans to buyers.  The decline was not unexpected since April data followed the slight bounce seen to the market from the end of the stamp duty holiday rush that occurred in the first quarter.  The stamp duty holiday expired on March 24 and ended the 1% savings for first time buyers on property purchases up to £250,000.  The impact of the end of the stamp duty holiday can be seen by the largest decline in mortgages from March to April recorded for first time buyers.  This group of buyers declined in numbers to just 12,600 which was a fall of 48%.

Paul Smee, director general of the CML, said, “April's figures show the expected effect of the end of the stamp duty concession on UK mortgage lending.

“Given the economic uncertainty, any significant pick up in lending in the coming months seems unlikely.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, responded to the latest CML report, saying, “Not only was there a decline in the number of first-time buyers, lending fell across the board, suggesting that a sustained recovery in the housing market is a long way off.

“The added problem now is the growing eurozone crisis. Nobody is sure how this will pan out but it is likely that lenders will take a 'wait and see' approach, becoming more cautious about the volumes of lending they do until there is some resolution, which is likely to take some time.”