The Council of Mortgage Lenders (CML) has published its May figures which show that house purchase lending was up slightly in May compared to April, but was down compared to a year ago. The figures also showed that first-time buyers saw a decline in lending volumes compared to last year whereas buy-to-let lending continues to grow year-on-year, mainly driven by remortgage activity.

Paul Smee, director general of the CML, commented:

House purchase lending in May was slightly up on the previous month, suggesting the market might be waking up after a subdued first quarter. Activity has broadly been down on last year but we expect it to rise in the summer months as, with historically low interest rates and a competitive lending environment, borrowing conditions are relatively favourable. But we cannot ignore the continuing affordability constraints caused by high house prices relative to earnings which will work in a contrary direction.”

For the full press release click here.