House purchase lending up 33% in May

The number of house purchase loans grew by 33 per cent between April and May and by 24 per cent over the course of the year. The value of the loans grew by 36 per cent and 29 per cent respectively.

CML director, General Paul Smee says: “It is positive news for the market that the slump following the end of the stamp duty concession seems to have been short-lived. Lending is similar to late 2011 levels and showing a healthy improvement on the same time last year.”

The characteristics of first-time buyer loans are said to be beginning to return to normal after March and April’s stamp duty effect, as a 43 per cent increase in the number of new loans and a 53 per cent increase in the value of the loans recorded between April and May.

Remortgage lending was also found to have increased in May with £3.5 billion advanced for remortgage. This is in comparison to the £3.1 billion recorded for April but remains down from £3.8 billion recorded in May 2011.