British house purchase lending rises in February

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Britain's housing purchase lending rose in February, figures showed on Monday.

According to the latest figures from the Council of Mortgage Lenders (CML), lending to both first-time buyers and home movers increased in February, with first-time buyers taking the bigger increase.

According to CML, some 14,100 loans worth 1.7 billion pounds (2.7 billion U.S. dollars) were taken out by first-time buyers, up 8 percent in number and 6 percent in value from January and up 18 percent in number and 21 percent in value compared with a year earlier.

Home movers took out 22,500 loans worth 3.7 billion pounds, a 2-percent increase in number and a 3-percent increase in value month on month and a 16-percent increase in number and 19 percent increase in value year on year.

CML said 51 percent of first-time buyers bought properties priced between 125,000-250,000 pounds in February, up from 49 percent in January.

February was the last full month of the stamp duty concession although next month's data is expected to bring a further rise in first-time buyer numbers as they moved to beat the March 24 deadline.

However, the CML said the rise may be temporary, now that full stamp duty has been reimposed for first-time buyers.

"It is encouraging to see the continuing year-on-year improvement in house purchase lending," CML Director-General Paul Smee said.

"However, it is not yet clear whether the end of the stamp duty concession will lead to a falling off in first-time buyer numbers and how much this may be offset by the government's NewBuy scheme, available to all buying a new build property," he said.

The most recent figures on mortgage approvals -- mortgages agreed with borrowers but not yet lent -- have suggested that sales may dip soon.

Last month, the Bank of England, the country's central bank, said approvals, which are a good indicator of near-term trends, fell by 15 percent in February to just under 49,000, the lowest monthly figure for eight months.

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