The total net increase in lending to British consumers last month was higher than that recorded in April, according to official statistics released today.

However, the £9.5 billion rise was still lower than the previous six-month average, Bank of England data on lending to individuals has revealed.

At £8.7 billion, the increase in lending secured on dwellings - such as mortgage and homeowner loans - was lower than both the April increase and the previous six-month average.

On the whole, consumer credit went up in May, although net credit card lending fell by £0.2 billion in May, which was a drop on the £0.1 billion increase in April.

In other news, the buy-to-let mortgage market may be boosted by the findings of a report released today.

A Paragon study into residential lettings rental yields found that 63 per cent of landlords have seen both rents and tenant demand rise consistently over the past 12 months, which has prompted many to seek additions to their property portfolio.

© Adfero Ltd