Lending in spain up for first time in three years

Mortgage lending in Spain increased in March 2014 for the first time in three years, according to new figures.

The data from the National Institute of Statistics, based on data from the Property Register, shows that new mortgages rose 2 per cent in March to 16,625, the first increase in 46 months. The average value of a new mortgage climbed 5.6 per cent to €102,397, taking gross lending up 7.7 per cent to 1.7 billion euros.

"A return to normality for mortgage lending is a prerequisite for any recovery," notes Spanish Property Insight. Indeed, the country's housing market has depended on overseas buyers in the last year as the sole cause of an increase in sales, even introducing a Golden Visa scheme to encourage more investment from abroad. Now, though, lending is up, although the 2 per cent rise follows a 33 per cent fall in February, notes the site, which suggests that the market is too volatile to draw conclusions about a recovery.