First-time buyer lending increased by 23% year-on-year and 10% from the month before to reach £4.3bn in May 2016, figures from the Council of Mortgage Lenders have revealed.
Home movers and landlords both saw lending drop by 2% and 4% year-on-year, though they rose by 19% and 4% from the month before.
Paul Smee, director general of the CML, said: “There was a sense of the market regaining some equilibrium in May, following the stamp duty driven spike in March and the subsequent dip in April.
“For the second month running, first-time buyers borrowed more than homemovers, the first time in 20 years that this has been the case. Buy-to-let continues at lower levels as expected, after the change to stamp duty.
“Brexit, and its likely effect on the market, is a question to which the answer will not immediately be forthcoming. Lenders will continue to be open for business as usual, but lending volumes may be affected by uncertain consumer sentiment.”
