Gross lending in May rises 4% to £18.2bn

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Gross mortgage lending rose four per cent to £18.2bn in May, according to the Council of Mortgage Lenders.

Lending in May was up 14 per cent year-on-year, from around £16bn in 2015.

May 2016’s lending was the highest May figure since the £23.7bn logged in 2008 when CML records began.

CML senior economist Mohammad Jamei says: “As expected, lending continued to be somewhat dampened in May, reflecting the earlier rush in the first quarter to beat the stamp duty change on second properties.

“Looking ahead, there is likely to be considerable uncertainty as a result of the EU referendum decision. We expect this to affect sentiment and reduce activity below levels that would otherwise be expected in the near term, as both buyers and sellers adopt a wait-and-see attitude until the dust begins to settle.

“Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance.”