Gross mortgage lending rose markedly in May, new figures have suggested.
The Council of Mortgage Lenders (CML) has calculated such deals amounted to a £12.2 billion for the month – a total 24 per cent greater than the £9.9 billion recorded in April.
Such movement in May 2012 also represented a 13 per cent rise on the £10.8 billion reported for the corresponding four-week period in 2011.
Bob Pannell, chief economist at the CML, noted the government appears to be seizing the opportunity to spur activity in the housing market and increase home ownership – a move used to counter the negative impact the ongoing eurozone crisis is having on markets in the UK.
The CML is therefore eager to learn more about the funding for lending scheme outlined by the Conservative-Liberal Democrat coalition, which has been designed to bolster purchasing figures.
Mr Pannell explained that despite a broadly flat backdrop, mortgage lending is continually moving up and down, adding: “Unfortunately, a number of one-off factors, such as the Diamond Jubilee and the Olympics, are set to distort market indicators over the coming months.”
