There was a significant fall in residential property lending during April 2012 following the ‘surge in activity’ in March 2012. The number of loans approved fell from 51,600 loans in March, down to 36,000 in April, according to the Council of Mortgage Lenders (CML).

The largest fall was to first-time buyers as only 12,600 loans were approved, a 48% decrease compared to March 2012 and a 12% fall compared to April 2011/

The drop off in activity for first-time buyers was seen mainly for properties that would have qualified for stamp duty exemption in March but which were subject to stamp duty in April. Purchases of properties valued between £125,000 and £250,000 fell by 70% in April compared to the previous month, whereas those valued at £125,000 or below - which are still exempt from stamp duty - fell by just 11%.

Paul Smee, director general of CML, said: "Aprils figures show the expected effect of the end of the stamp duty concession on UK mortgage lending. Given the economic uncertainty, any significant pick up in lending in the coming months seems unlikely.

"However, our recent research highlights that over 80% of people still aspire eventually to own their own homes, and long term demand clearly still exists."