May lending second highest on record, says CML

Gross mortgage lending reached 28.7bn in May, figures out from the Council of Mortgage Lenders have revealed.

Lending was 18% higher than in April and nearly 30% higher than in May last year.

It was the strongest May figure on record and only 0.5% below the record for a single month seen in July 2004 when lending hit 28.9bn.
Lending is typically higher in May than in April, as house buying strengthens during the spring months.

However, even taking into account seasonal factors and the impact of the Easter break on last month’s figures the rise in lending in May was very strong.

CML director general, Michael Coogan says: “The recent lending market has been consistently strong. Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher priced properties and strong consumer confidence.”

“We expect demand to moderate later this year, but it looks set to stay robust for the immediate future – although property viewings might be affected by World Cup fever.”