Both residential (£11.1bn) and buy-to-let lending (£3.4bn) in May were higher than in April, with increases of 2.0% and 7.8% respectively, according to analysis from Equifax Touchstone.
This is a combined 3.3% (£470m) increase in sales volumes month-on-month. The average value of each mortgage in May was £183,454 for residential (May 2014: £176,361) and £155,916 for buy-to-let (May 2014: £152,936).
May 2015 was the second highest month in terms of mortgage lending volumes in the last eight years. Monthly figures were beaten only by March 2015, when lending volumes reached £15bn.
The Equifax Touchstone data, which covers 92% of the intermediated lending market, shows that when compared to May 2014, residential mortgage sales were up by 10.6% (£1.1bn) and buy-to-let has increased 26.5% (£710bn), a combined increase of 14% year-on-year.
Looking at year-to-date (January to May) comparisons between 2015 and 2014, residential sales are up 7.2% (£3bn). Added to the buy-to-let sales growth at 23.4% (£2.8bn) the total market has grown by £6.22bn (10.54%) in 12 months.
Iain Hill, relationship manager at Equifax Touchstone, said: “After the slight sales decline reported in April, it was difficult to predict what May would bring. With uncertainty created by the General Election now removed, it will be interesting to see if the market continues to power ahead into the summer months.
“An increase in lending volumes of £710m (26.5%) year on year shows a dramatic rise in the popularity of buy-to-let mortgages as retirees unlock pension pot capital and invest in property to generate income. The strong figures for buy-to-let lending show that the popularity rally remains very healthy.”
