Surprising figures from the Council of Mortgage Lenders (CML) have this week shown that mortgage lending rebounded in March when the amount lent in home loans rose by 21% compared with the previous month.

The pick-up came after a lull in lending for home loans at the start of the year so is not quite as impressive at it seems at first glance.  In fact, there was a 2% drop in gross mortgage lending compared with March 2010.

However, after months of uncertainty this is a good sign that the market is beginning to pick up once more. The figures also show that the trend of remortgaging in recent months has continued.

Gross mortgage lending reached an estimated £11.3bn in March. However, the big month-on-month rise was the result of particularly low lending of £9.3bn in February.

A three-month on three-month comparison shows that gross lending for the first quarter of 2011 was £30.1bn, an 11% decline from the fourth quarter of 2010 and a 1% increase on the first three months of 2010.

The housing market appears to be, hesitantly, emerging from hibernation. Household finances are still under a lot of pressure and this is why demand for house purchase loans fell in the first three months of 2011.

However, lenders expect mortgages to become more available in the coming months, and this could help to underpin house-buying activity, although still at relatively low levels.

Remortgage demand, meanwhile, continues to develop, presumably linked to expectations of higher base rates. Remortgage approvals in February were the highest for more than two years. Stronger remortgage activity looks set to continue propping up overall lending.

There are so many comparisons knocking about in the media that the UK mortgage market can appear to be in the depths of a depression or on its way back to a boom. Both of these extremes are, of course, misleading. Things are better than they were in the heart of the crisis, but the fundamental shift in the nature of the market means comparisons with the pre-2007 boom are entirely misleading.

The latest statistics show that, while the facts of the UK housing market remain subdued, many people selling their home are optimistic to the point of pricing themselves out of the market.

The latest property market survey revealed that sellers increased their asking prices by more than £4,000 in April, bringing the total increase since the beginning of the year to more than £13,000. But buyers are refusing to meet their demands.

Estate agents said the imbalance meant higher asking prices looked “misplaced” and advised sellers to lower their prices to secure a sale.

With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents’ books that we have recorded in nearly four years. While stock levels normally increase during the first half of the year, this is a larger increase than normal.

With government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season.

The unprecedented run of five bank holidays over a short period has the potential to further hinder already low transaction levels as an unwelcome distraction for the spring housing market if potential buyers take short breaks and holidays rather than pursuing their next move.

Analysts have suggested that prices will fall further this year from typical levels of around £160,000.

The tough selling environment that the less wealthy areas are currently experiencing is likely to deteriorate further in the latter part of 2011. In these areas the spring moving season offers the best opportunity for sellers to achieve success if they embrace more serious sales tactics.