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Gross mortgage lending £18.2 billion in May

Published: 27 June 2016

The Council of Mortgage Lenders estimates that gross mortgage lending reached £18.2 billion in May. Lending was 4% higher than April (£17.6 billion), and 14% 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.

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion.

2. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly mortgage lending press release and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.

 3. The CML's June gross mortgage lending estimate will be published on Thursday 21 July 2016.

 4. This month's full market commentary can be viewed on the CML website under the News & Views - Analysis section.

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