Uncertain is the most common description of the UK housing market these days, according to many close to the market. One year earlier, gross lending during the same month hit £21.4bn which is 2.3% higher than March of this year. The month of February this year was not as strong in regard to lending, as a total of £18.9bn was posted. These figures pose an interesting set of data going forward as the most active time of the year in the housing market is quickly approaching.

Gross mortgage lending is a primary indicator of health of the market overall. Not only has this monthly figure been inconsistent thus far this year, uncertainty in regard to other sectors of the market continues.

One sector which refuses to perform anything but strong is remortgage. Since the middle of last year, this sector has been on fire and continues today. Talk of a possible interest rate hike taking place in May is now becoming quieter as some factors within the economy are running at closer to goal level. One in particular, inflation, has calmed quite a bit and is now in the range of 2.5% to 2.9%. The Bank of England goal for inflation is 3.0% which occurred in the month of November last year.

Jeremy Leaf, north London estate agent, commented on the latest housing data released, saying: “Never was it so important not to put too much reliance onto one month’s numbers as only a few days ago we were commenting on the positive lending data for February rather than these slightly negative approvals.”

Leaf added: “Needless to say, they reflect a rather mixed economic picture – one month up, one month down – but show a property market which is relatively uncertain as we approach the crucial spring period, which is usually the busiest time of the year.”