In its latest sentiment survey, 50% of lender members were positive about the long-term future of the economy, compared with the 43% reported in June.

The survey also found that just 20% of respondents were not feeling confident about the long-term prospects, a significant fall from the 34% who reported no confidence in June.

The ASTL also found that lenders were particularly positive about the outlook for their own businesses with 75% believing that volumes would grow over the next six months.

None of the lenders expected business to fall off over the next few months, while 51% expected growth in the sector to increase, a major increase on the post-Brexit result when just 19% forecasted growth.

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“While there is, of course, still some caution around Brexit, lenders’ confidence for their businesses and the UK economy continues to grow significantly,” said Benson Hersch, CEO of the ASTL.

Almost half of members (48%) felt the measures proposed in the recent Budget could have a significant impact on the housing market.

Meanwhile, 46% expressed concern for the outcome of the Brexit negotiations, which has dropped from the 64% who said they were concerned in June.

“The measures announced in the Budget are likely to have a positive impact on the housing market, although it remains to be seen whether they will actually be implemented in 2018.

“We hope to see this positive attitude and potential growth in the sector remaining high, while worry over political uncertainty and its impact continues to decline.”