Mortgage lending up by 29 per cent in June as political uncertainty ends
The amount of money lent to UK home buyers in June showed a significant rise compared to May as political uncertainties waned, according to new figures
Read more: UK house price growth slows to lowest rate in over a year
Gross mortgage lending rose 29 per cent compared with May, climbing to an estimated £20.5bn, according to the Council of Mortgage Lenders.
Council of Mortgage Lenders economist Mohammad Jamei said:
Activity is picking up after a slow start to the year. Our lending figure for June may be flattered by the end of political uncertainties related to May’s General Election, and the underlying picture is likely to be one of only modest recovery.
This should be supported by favourable conditions in the economy, though it will be limited by rising house prices and affordability pressures.
The Conservatives' win at the General Election was widely seen as a surprise, with polls pointing to a hung parliament, and speculation over a possible Labour-SNP agreement.
While the rate slowed, UK house price growth has continued to increase, with UK property prices climbing in 5.7 per cent in the year to May.
As well a monthly increase, there was a year-on-year increase on 15 per cent on the £17,8bn of lending undertaken in June 2015.