Gross mortgage lending hits £18.2 billion in May

Lending was 4 per cent higher than April (£17.6 billion), and 14 per cent higher than May 2015 (£16 billion), and the highest May figure since 2008 when gross lending reached £23.7 billion.

Commenting on market conditions in this month’s market commentary, CML senior economist Mohammad Jamei said: “As expected, lending continued to be somewhat dampened in May, reflecting the earlier rush in the first quarter to beat the stamp duty change on second properties.

“Looking ahead, there is likely to be considerable uncertainty as a result of the EU referendum decision. We expect this to affect sentiment and reduce activity below levels that would otherwise be expected in the near term, as both buyers and sellers adopt a wait-and-see attitude until the dust begins to settle. Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance.”