Gross mortgage lending was an estimated £11.5 billion in March, a 16% rise from £9.9 billion in February but a 52% decline from £24.2 billion in March 2008, according to new data from the Council of Mortgage Lenders (CML).

Gross lending for the first quarter was an estimated £33 billion, a 29% decline from the fourth quarter of 2008 and the lowest quarterly lending total since the first quarter of 2001. A seasonal fall of 10% is typically experienced between the fourth and first quarter. This first quarter is broadly in line with our expectations for £145 billion in gross lending this year.

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CML director general, Michael Coogan said: "While the market is beginning to show some signs of stabilising, housing transactions and lending are set to remain low for the foreseeable future.

"Today's Budget does provide the opportunity for action to reinforce the housing market. In particular we would like to see the government extend and simplify low-cost home-ownership, raise the stamp duty threshold to £250,000, and expand existing support schemes for borrowers in difficulty."

(CD/JM)