Gross mortgage lending showed somewhat of an increase in May, but failed to overstep the level from last year. According to the Council of Mortgage Lenders, gross lending in May increased by 2% over April, and fell by 3% in a comparison with May 2014. In adjusting for seasonal factors, the figure for May is expected to be above £17 billion. If so, then it will be the third consecutive month for lending to be above that level.

The CML has forecasted a slight recovery in mortgage lending, and they are set to be right with more demand for property appearing in other factors. First time buyers are especially expected to show interest in an attempt to grab a good deal before house prices rise further. Homeowners are also expected to show further demand in remortgage lending as they are choosing to stay put and draw out cash equity for home remodels and debt lowering.

The summer normally shows a spurt in activity within the housing market, but it could be more of a boost this year with growing consumer confidence and continued low interest rates offered by lenders.

CML economist Mohammad Jamei said, “The economic environment is one that should support increased activity in the near term, coupled with low mortgage rates. But while we expect these factors to support activity, there is a limited upside, driven mainly by affordability constraints.

“As we have expected over the past few months, the latest monthly lending figures show activity beginning to recover, though from a low base. Loans for house purchase were stable in April, compared to March, though there was a slight dip in the number of loans for remortgage.

“Approvals for house purchase in April showed a 10 per cent increase compared to March, the largest monthly rise since early 2009. Remortgage approvals also rose by 10 per cent, which could be the result of households trying to take advantage of the very competitive mortgage rates available. Overall, data on housing approvals also point towards a market that is set to improve gently.”