A rush by landlords and second home buyers to beat the deadline for a new three per cent stamp duty surcharge on additional properties saw mortgage lending in March soar 59 per cent higher than a year ago.
The Council of Mortgage Lenders said it had seen the biggest stamp duty distortion of the property market ever, as buy-to-let purchasers flooded the market. A total of £25.7 billion was taken out by borrowers last month – 43 per cent more than February when lending totalled £18 billion.
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Richard Sexton, director of chartered surveyor e.surv, said: ‘This peak of house purchase lending could be the highest we’ll see in a single month for the rest of the year. Last-minute lending ahead of stamp duty changes has sparked an inevitable rush of activity. The view is, once the race to beat stamp duty changes finally fizzles out, the lending market will continue on a stable path – undaunted by a dip in buy-to-let activity.
‘With buy-to-let lending out of the spotlight, the focus moves to first-time buyers.
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