Scottish Property News

Signs of housing market pick up as mortgage lending rises 16%

A total of £11.5bn was advanced during the month, up from £9.9bn in February, according to the Council of Mortgage Lenders (CML). But the group warned that although the market was showing signs of stabilising, transactions remained at a low level, with lending 52% lower than in March 2008.

The figures came as HM Revenue & Customs published data showing the number of homes sold soared by 40% in March.

Around 60,000 homes in the UK were sold for more than £40,000 last month, up from 43,000 in February.

Property sales were at their highest level since October last year, although they were still more than a quarter lower than in March 2008. Even once the figures had been adjusted for seasonal trends, they still showed a 13% increase month on month.

The positive data on the housing market come after the Bank of England reported a 19% jump in the number of mortgages approved in February. Nationwide also surprised the market by saying earlier this month that house prices rose by 0.9% during March, although Halifax reported a 1.9% fall for the same period.

Economists warned that while activity in the housing market may have bottomed out, any recovery is a long way off.

CML director general Michael Coogan 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."