The twelve-month growth rate increased to 0.9% from 0.8% for April, whilst the three-month annualised growth rate was 0.8% in May, a 0.2 percentage points decrease from April.
Within the total, net lending secured on property increased by £1.2 billion, stronger than the April rise of £1.0 billion but just below the previous six-month average of £1.3 billion. The twelve-month growth rate rose to 1.1%.
The three-month annualised growth rate fell to 0.8%, from 1.0% in April. The number of loan approvals for house purchase (49,815) was marginally lower than the April figure (49,828) and below the previous six-month average (51,856). Approvals for remortgaging (25,759) were lower than in April and below the previous six-month average (26,443), while approvals for other purposes (24,656) were also lower than in April and below the previous six-month average of 25,565.
Commenting on today's Bank of England mortgage approvals, Simon Rubinsohn, RICS chief economist said: "Mortgage approvals for new home purchase in May were broadly unchanged from the previous months reading. They remain above the lows seen in the early part of this year following the ending of the last stamp duty holiday but are still well down on historic norms. The relatively weak numbers released today 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 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. According to the latest Housing Market Survey from RICS, almost three quarters of respondents expect instructions to increase as a result of the ending of the need for a HIP with estate agents anticipating the new stock on their books rising by around 15%."
