However, house purchase mortgage approvals for May were below the previous six-month average of 51,856.
In addition, the BoE figures showed that remortgaging activity continues to be stifled, with approvals for remortgaging in May at 25,759 compared to 26,279 in April and the six-month average of 26,443.
Nevertheless, net mortgage lending increased by £1.2bn and the 12-month growth rate increased to 1.1% from 0.9% in April. May’s performance was stronger than April’s rise of £1bn, but just below the previous six-month average of £1.3bn.
Further BoE figures showed that total net lending to individuals rose by £1.5bn in May, with the 12-month growth rate increasing marginally from 0.8% in April to 0.9%.
Simon Rubinsohn, chief economist of the Royal Institution of Chartered Surveyors (RICS), said: “Home purchase mortgage approvals remain above the lows seen in the early part of this year following the ending of the last Stamp Suty holiday but are still well down on historic norms. The relatively weak numbers may in part be a reflection of the political and economic uncertainty that prevailed ahead of the General Election.
“RICS expects activity in the housing market to gradually pick-up over the next few months helped by the new Government’s decision to abolish Home Information Packs (HIPs). Lack of instructions to estate agents has been an important factor holding back transaction levels over the past year but the early indications are that the shift in policy in this area will increase the supply of properties coming to the market.”
