Gross mortgage lending reached £19.1 billion in July, according to estimates from the Council of Mortgage Lenders.
This is 7 per cent higher than June (£17.9 billion), 15 per cent higher than July last year (£16.7 billion) and the highest monthly figure since August 2008 (£19.3 billion).
Henry Woodcock, principal mortgage consultant at IRESS, says: “It’s clear that the market may have found its footing and is striding forwards following the introduction of the [Mortgage Market Review].
“However, there are real question marks over whether this growth can be sustained for the remainder of the year.
“A combination of rising house prices, fears of an interest rate hike and tougher lending conditions is denting confidence among new buyers, and we expect this to accentuate the seasonal summer slowdown.
“With London in particular showing signs of slowing growth, we may see the frantic pace in the housing market decelerating – a trend that will continue if rates are hiked earlier than forecast.
“However, that’s not to say activity is about to plummet. First-time buyer enthusiasm, aided by Help to Buy, remains strong among those able to access finance, while the buy to let sector will continue to underpin lending in the long-term as the UK’s need for accommodation continues to climb.”
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