Building societies approved one in three new mortgages across the UK in the first three months of 2017, new data shows.
According to the Building Societies Association, 112,287 new mortgage loans were approved, up 2% from the same period last year.
However, despite the rise in mortgage approvals, gross lending by the sector was down 15% compared to last year when the rush to beat the 3% stamp duty increase distorted the market.
There were 359,159 new mortgage approvals across the market, giving building societies a market share of 31%.
Robin Fieth, chief executive of the BSA, said: “Activity in the mortgage market was relatively subdued in the first quarter of the year. Homebuyers have been struggling with low levels of properties coming on the market, meaning the availability of suitable housing is limited and so fewer transactions have taken place.
“House prices as a multiple of earnings are also hovering around their historic peak, making affordability more difficult for first time buyers or those moving up the property ladder.
“These conditions are unlikely to change in the near term and so activity will remain subdued for the remainder of the year. Although house prices have reduced slightly in recent months, the record low mortgage interest rates currently on offer and the lack of housing supply relative to demand will support house prices over the year.”
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