LONDON (MNI) – Mortgage lending rebounded in May after the slump in
April, with the latter due to the expiry in March of the stamp duty
holiday.
Council of Mortgage Lenders data showed the number of house
purchase loans in May rose to 48,300, up 33% on the month and up 24% on
the year, with first-time buyers coming back in droves, with a 43%
increase from April.
The data appear to simply reflect the distortions caused by the
removal of the stamp duty, or property transaction tax, holiday rather
than any underlying pick-up in the UK housing market in recent months.
The CML noted first-time buyer lending was back at levels seen in the
second half of last year.
“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,” Paul Smee, CML Director General said.
The CML data are based on mortgage advances – that is the amount
actually provided by lenders to property purchasers.
The June Bank of England personal lending data, which cover the
whole sector. will be published on July 30.
-London bureau: +4420 7862 7491; email: drobinson@marketnews.com
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