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| Mortgage lending up 21% in May | Mortgage lending up 21% in May |
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| Mortgage lending jumped 21% in May, the sharpest rise since October 2008, suggesting Britain's housing market once again has a spring in its step. | Mortgage lending jumped 21% in May, the sharpest rise since October 2008, suggesting Britain's housing market once again has a spring in its step. |
| The Council of Mortgage Lender's gross lending figures, which reveal the value of loans advanced without taking into account repayments, showed £14.7bn of mortgages were taken out during May, up from £12.2bn in April. The figure was also 17% higher than the £12.6bn seen in May 2012, aided by government schemes to boost lending. | The Council of Mortgage Lender's gross lending figures, which reveal the value of loans advanced without taking into account repayments, showed £14.7bn of mortgages were taken out during May, up from £12.2bn in April. The figure was also 17% higher than the £12.6bn seen in May 2012, aided by government schemes to boost lending. |
| Bob Pannell, chief economist at the CML, said the upturn was stronger than expected: "Funding conditions, helped by the Funding for Lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability, and a gradual resumption of lenders' risk appetite. | Bob Pannell, chief economist at the CML, said the upturn was stronger than expected: "Funding conditions, helped by the Funding for Lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability, and a gradual resumption of lenders' risk appetite. |
| "While the direction of travel is clear and fits well with the more positive housing surveys from Rics and others, our forward estimate does imply somewhat stronger house purchase activity than we had been expecting." | "While the direction of travel is clear and fits well with the more positive housing surveys from Rics and others, our forward estimate does imply somewhat stronger house purchase activity than we had been expecting." |
| He added that the surge may reflect sales that had been delayed due to poor weather earlier this year. | He added that the surge may reflect sales that had been delayed due to poor weather earlier this year. |
| Mark Harris, chief executive of mortgage broker SPF Private Clients, said a slew of cheap, fixed-rate deals and lenders' relaxing their criteria has helped the upswing. "This comes as no surprise: finally, the pick-up in business that estate agents and mortgage brokers have been reporting since the start of the year is filtering through to the official figures," he said. | Mark Harris, chief executive of mortgage broker SPF Private Clients, said a slew of cheap, fixed-rate deals and lenders' relaxing their criteria has helped the upswing. "This comes as no surprise: finally, the pick-up in business that estate agents and mortgage brokers have been reporting since the start of the year is filtering through to the official figures," he said. |
| "Falling mortgage rates on the back of Funding for Lending are resulting in some of the cheapest fixed-rate mortgages ever, and this trend shows no signs of abating." | "Falling mortgage rates on the back of Funding for Lending are resulting in some of the cheapest fixed-rate mortgages ever, and this trend shows no signs of abating." |
| Meanwhile, the chancellor's Help to Buy scheme beat forecasts in its first two months, figures showed this month. However, this prompted warnings from the Buildings Societies Association of a housing price bubble if the government fails to put an exit strategy in place. | Meanwhile, the chancellor's Help to Buy scheme beat forecasts in its first two months, figures showed this month. However, this prompted warnings from the Buildings Societies Association of a housing price bubble if the government fails to put an exit strategy in place. |
| Separate figures from the Office for National Statistics show further signs of a strong recovery on the high street, with the total amount spent in the retail sector rising by 3.1% year-on-year, the highest increase on record. | Separate figures from the Office for National Statistics show further signs of a strong recovery on the high street, with the total amount spent in the retail sector rising by 3.1% year-on-year, the highest increase on record. |
| The UK's retail sales rose 2.1% in May from the month before, beating expectations. Sales were also up 1.9% on the same month last year. The monthly change marked a big shift from April when sales saw a downturn, falling 1.1%. | The UK's retail sales rose 2.1% in May from the month before, beating expectations. Sales were also up 1.9% on the same month last year. The monthly change marked a big shift from April when sales saw a downturn, falling 1.1%. |
| Howard Archer of IFS Global Insight said: "The jump in retail sales is seriously good performance, even seen in the context of following on from an appreciable drop in April when sales were held back by cold weather. | Howard Archer of IFS Global Insight said: "The jump in retail sales is seriously good performance, even seen in the context of following on from an appreciable drop in April when sales were held back by cold weather. |
| "We currently forecast GDP growth of 0.5% quarter-on-quarter in the second quarter, but this is looking increasingly conservative given the recent stream of improved data and surveys across the economy." | "We currently forecast GDP growth of 0.5% quarter-on-quarter in the second quarter, but this is looking increasingly conservative given the recent stream of improved data and surveys across the economy." |
| However, he added: "There are still significant uncertainties about the prospects for consumer spending going forward. While record high employment and improving confidence are encouraging for consumer spending prospects, purchasing power is currently being constrained by very low earnings growth and recently higher inflation." | However, he added: "There are still significant uncertainties about the prospects for consumer spending going forward. While record high employment and improving confidence are encouraging for consumer spending prospects, purchasing power is currently being constrained by very low earnings growth and recently higher inflation." |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Yorkshire BS | |
| Yorkshire BS | Yorkshire BS |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |