Although the housing market is showing few signs of igniting following the election slowdown, there is at least some good news from a mortgage consultancy which shows significant increases in lending during May.
Analysis from Equifax Touchstone shows that both residential owner occupier borrowing (totalling £11.1 billion) and buy to let borrowing (at £3.4 billion) in May were higher than in April, with increases of 2.0 and 7.8 per cent respectively.
This is a combined 3.3 per cent increase in mortgage sales volumes month-on-month. The average value of each mortgage in May was £183,454 for residential owner occupier (up from £176,361 in May 2014) and £155,916 for buy-to-let (a small rise on the May 2014 figure of £152,936).
May 2015 was the second highest month in terms of mortgage lending volumes in the last eight years. Monthly figures were beaten only by March 2015, when lending volumes reached £15 billion.
The Equifax Touchstone data covers 92 per cent of the intermediated lending market.
“An increase in lending volumes of £710m (26.5%) year on year shows a dramatic rise in the popularity of buy-to-let mortgages as retirees unlock pension pot capital and invest in property to generate income” says Iain Hill, relationship manager at Equifax Touchstone.