Mortgage lending in the UK dived by 83 per cent during March, fuelling speculation that the housing market recovery is running out of steam.

Net lending, which strips out redemptions and repayments, fell to £318 million during the month, down from £1.85 billion in February and the lowest level since July last year, when it was negative, according to the Bank of England.

The low figure is likely to partially reflect the distortions to the market caused by the government’s stamp duty holiday, which led to people rushing through transactions on lower-value properties before the end of last year.

It can also partly be explained by the severe winter weather the country suffered. – (Reuters)