The number of loan approvals for house purchase was 61,341 in March, down from February's figure of 61,760.
However the figures remain higher than the average of 60,303 over the previous six months.
Additionally, the number of remortgage approvals rose from 32,099 in February to 32,591.
The number of approvals remained higher than the average of 31,726 over the previous six months. The number of approvals for other purposes was 9,369, compared to the average of 9,298 over the previous six months.
Richard Sexton, director of e.surv chartered surveyors, commented:
“Based on these figures, arguably the mortgage market may need a jump start to get things moving again after this period of political unpredictability. Lending has been broadly flat since the beginning of the year. The bottom of the market has significantly slowed since December, even though all the necessary support mechanisms would appear to be in place for new buyers – with plenty of high LTV lending and mortgage rates at record lows.
“We’ve also seen new impetus from stamp duty changes, which would have been expected to charge-up demand a little more. In addition, new pension freedoms have allowed a host of retirees to consider investing in buy-to-let – forming another strong group competing for the same stock of property as home-movers, yet the market still appears to lacks any real growth momentum.
“Uncertainty remains – with the looming prospects of mansion tax on one hand and proposals to increase housing stock on the other. These political pressures are acting as an anchor to growth in the housing market.”
Richard Pike, Phoebus Software’s sales and marketing director, added:
“The increase in loans for both purchase and remortgage in March has taken everyone a little bit by surprise after a very subdued start to the year. It indicates that perhaps the election is having less of an impact on the mortgage market than many of us thought. Record low rates being announced on a weekly basis has got to help consumer confidence and this together with the fact that lenders seem to have eased back a little on affordability criteria should mean that completions continue to rise.
“The biggest change to this will be an unclear result to the general election. People do not like uncertainty, so the best thing to keep figures moving upwards would be a either a clear cut result, or at least a government formed within a couple of days of the general election.”
