Mortgage lending took off during the month of March according to the latest data from the Council of Mortgage Lenders. The data is being referred to as an anomaly by many close to the housing market due to the new tax introduced on April 1^st. Lending was at elevated levels during the last month of the first quarter, especially in regard to home purchases which totaled almost £14bn.

Home purchase lending increased almost 60% month on month and 60% compared with the same month last year. First time buyer lending increased more than 30% for the month and 29% when compared with the same time last year.

Remortgage lending posted slightly less impressive data and fell slightly during the month of March. Total for the month was 2% lower compared with February, but higher by 7% compared with the same month last year.

Remortgage activity is expected to continue to be strong through the year according to many within the housing market. The expectation is not the same for other types of lending which is expected to contract and fall during the month following March. The fall will be blamed on the tax imposed on the purchase of second homes.

Paul Smee, director of the CML, commented on the latest data to surface, saying: “Activity was distorted in March due to a rush to beat the introduction of changes to stamp duty on second properties in April, alongside the seasonal uptick in activity before Easter. While the increases are substantial, these supercharged levels of activity are likely to be temporary and will fall back over the summer months.”