Stamp duty move hits home loans
The number of loans to home buyers fell by 30 per cent month-on-month in April to 36,000 loans worth ÂŁ5.3 billion, the Council of Mortgage Lenders (CML) said.
A total of 12,600 loans worth ÂŁ1.5bn was advanced to first-time buyers in April, around half the number recorded in the previous month, when buyers rushed to complete deals before the two-year concession ended, the CML found.
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Hide AdThe body warned that a significant pick-up in purchases is unlikely in the coming months because of economic uncertainty.
The drop in first-time buyer activity was seen mainly among homes worth between ÂŁ125,000 and ÂŁ250,000, which would have been exempt from stamp duty until March.
Purchases of homes in this bracket plummeted by 70 per cent month-on-month in April.