House purchase approvals slow in May
- May sees 57,800 house purchase approvals, 15.1% lower than April and lowest monthly total in 2 years
- Monthly dip reflects temporary hesitance to buy property in run-up to General Election
- April figures artificially strong as high-end buyers rushed to buy before a potential Mansion Tax
May saw the largest monthly drop in mortgage approvals in five years, as the General Election appears to have caused pause for thought, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
There were 57,813 house purchase mortgage approvals in May, 15.1% fewer than the 68,076 recorded in April, As a result, May represents the quietest month for house purchase lending in over two years, with the lowest monthly volume of house purchase approvals since April 2013 (55,573).
Previously, April saw a 9.9% monthly increase as high-end buyers pushed through sales in an attempt to circumvent the threat of a potential Mansion Tax.
On an annual basis, approvals were 6.4% below the 61,737 seen in May last year.