RESIDENTIAL mortgage lending slowed in May, which Landbay’s chief executive blamed on “poor consumer confidence and subdued house prices”.
New figures from trade body UK Finance found that gross mortgage lending across the residential market in May 2019 came in at £21.9bn, a 0.4 per cent decline on the same month last year.
However, the number of residential mortgages approved by high street banks in May was 9.1 per cent higher than in the same month in 2018.
“It was another slow month for mortgage lending, with a potent cocktail of poor consumer confidence and subdued house prices,” said John Goodall, chief executive of peer-to-peer property lender Landbay.
“However, it’s heartening to see a rebound in the number of mortgage approvals; demand continues to shine through even in challenging political and economic circumstances. For borrowers, the current landscape of low-interest rates, stable inflation and impressive wage-growth should lend some breathing space to their budgets, meaning things are looking up as we move into the second half of the year.”
Dilpreet Bhagrath, mortgage expert at Trussle, blamed political uncertainty for the weaker data.
“The slowdown in gross mortgage lending over the last year could be a symptom of the current political landscape, putting prospective buyers off purchasing a home at this time,” he said. “The government and industry need to work together to make homeownership more accessible and prioritising the development of innovative solutions and mortgage products is crucial to making this happen.”
Read more: Special report: Property investing