The Council of Mortgage Lenders revealed that mortgage lending had fallen in April because of the large number of Bank Holidays thanks to the Royal Wedding and Easter break.
The total value of mortgages approved to lenders fell to £9.8billion, down 14% compared with the last month, March, and 5% lower than April the previous year.
Despite the holidays, such low figures show that the housing market is still stuck in a rut, with prices falling slightly and very few sales actually materialising.
The CML were more upbeat, preferring to blame the drop in mortgage lending on the Easter break, and the fact a large number of people took a long holiday.
The CML’s chief economist, Bob Panell said, “Statistical noise, associated with extended holidays around Easter and the royal wedding, makes it harder to read the immediate market situation,”
“This represents an unfortunate temporary loss of signal, at a time when it would be useful to gauge the resilience of house purchase demand to economic uncertainties and the pressure on household incomes.
“Levels of activity look set to remain broadly flat over the near-term,” he added.