The data from the Office for National Statistics (ONS) for the month of March revealed that house inflation within the UK increased to 9%. The volume of mortgage lending for March was the highest level since August 2007 reported the Council of Mortgage Lenders (CML). Volume lending for home loans grew by 59% over February to £13.8 billion.

The increase in lending and the boost in sales is being credited to the high number of landlords and second home buyers that sought to escape a tax surcharge on second homes that would begin on 1 April. Landlords borrowed at an increase of 87% on February with a volume of £7.1 billion in the month of March.

The ONS data reveals that house prices have increased over the past five years by 36%. This is five times the growth of wages since 2011. The average weekly earnings have increased by only 7% for the same period. This only further compromises the ability for people to buy, upgrade, or move home; it is especially difficult for first time buyers.

The housing market is experiencing a cooling from the rush to buy created by the tax surcharge deadline at the beginning of April. There is also a withdraw from the market due to the unexpected outcome of the June EU referendum.

The average house price reported for March by the ONS was £292,000.

The expected decline in interest from buyers in the housing market and borrowers in the mortgage lending market is being met with unexpected high asking prices from sellers, yet more creative and aggressive tactics are being seen in the lending market. Lenders are hoping to stay in the boost found in the first quarter of the year by offering deals that haven’t been seen in years such as 100% mortgages or those with attractive incentives along with low interest rates.

The lag from the exit of landlords from the lending market is expected to be countered by the entrance of first time buyers and homeowners seeking remortgages. Both have opportunities in the market currently that few will be able to ignore.