This was the strongest May figure on record and only 0.50 per cent below the record for a single month seen in July 2004. Lending was 18 per cent higher than in April and, while lending is typically higher in May than in April, this rise was seen as very strong.
The Building Society Association (BSA) also released strong lending figures, with the highest May figure on record as gross advances reached £4,613m.
CML director-general, Michael Coogan, said: “Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher-priced properties, and strong consumer confidence. We expect demand to moderate later this year, but it looks set to stay robust for the immediate future.”
Drew Wotherspoon, head of communications for John Charcol, commented: “May’s figures highlight how much of a fundamental part consumer confidence plays in the success of the housing market. As the much-threatened house price crash of 2005 failed to materialise, over the past six months consumers have returned to the table and lending is now regularly hitting record levels.
“There are no signs to suggest this confidence will subside and while demand may even out towards the end of the year, I expect to see more strong figures for some time to come.”
Adrian Coles, director-general at the BSA, added: “It seems this trend is likely to continue, as the approval figures give a good indication of business in the pipeline. It’s reasonable to assume the market will be buoyant going into the Summer. It has been widely predicted the market will show signs of cooling, but this is not likely until the Autumn.”
