Home lending slows in May ahead of EU referendum
- May sees 65,113 house purchase approvals, down 1.7% from 66,250 in April – a 12-month low – as political uncertainty weighs upon lending habits
- Latest decline means house purchase approvals have fallen over 10% in the last three months
A further slowdown in home lending in May ahead of the EU referendum means house purchase lending activity has fallen to a twelve-month low, according to the latest Mortgage Monitor from e.surv, the UK’s largest residential chartered surveyor.
May saw 65,113 house purchase approvals (seasonally adjusted), down 1.7% from 66,250 the previous month. This marks a 12-month low in lending levels, and is the lowest monthly figure for home purchase loans since the 64,626 granted in May 2015. It follows monthly declines seen in April (-5.8%) and March (-3.0%) meaning volumes have fallen 10.5% over the last three months, as the political uncertainty ahead of June’s upcoming EU Referendum may be causing caution amongst lenders and borrowers alike.
Source: E.Surv Mortgage Monitor, May 2016