Total net lending to individuals rose by £1.5 billion in May, according to latest figures published by the Bank of England.
The 12-month growth rate increased to 0.9% from 0.8% for April. The three-month annualised growth rate was 0.8% in May, a 0.2 percentage points decrease from April.
Within the total, net lending secured on dwellings increased by £1.2 billion, stronger than the April rise of £1.0 billion but just below the previous six-month average of £1.3 billion. The 12-month growth rate rose to 1.1%.
The three-month annualised growth rate fell to 0.8%, from 1.0% in April. The number of loan approvals for house purchase (49,815) was marginally lower than the April figure (49,828) and below the previous six-month average (51,856). Approvals for remortgaging (25,759) were lower than in April and below the previous six-month average (26,443), while approvals for other purposes (24,656) were also lower than in April and below the previous six-month average of 25,565.
Consumer credit rose by £0.3 billion in May, above both the previous six-month average (£0.1 billion) and the April decline of £0.1 billion.. Credit card lending increased by £0.1 billion, below the previous six-month average of £0.2 billion other loans and advances increased by £0.2 billion, higher than the previous six-month average of a £0.1 billion decrease. The annual growth rate of consumer credit rose by 0.1 percentage points to 0.0% and the three-month annualised growth rate fell to 0.6%, from 0.8% in April.
Simon Rubinsohn, RICS chief economist said: “Mortgage approvals for new home purchase in May were broadly unchanged from the previous month’s reading. They remain above the lows seen in the early part of this year following the ending of the last stamp duty holiday but are still well down on historic norms. The relatively weak numbers released today may in part be a reflection of the political and economic uncertainty that prevailed ahead of the general election.
