Lenders handed out an estimated £12.6 billion in June, compared to £10.8 billion lent in May. However, this figure was 3 per cent lower than June 2010, which saw £13.0 billion of lending.

Gross mortgage lending for the second quarter of 2011 is estimated at £33.5 billion. This is an 11 per cent increase from the first three months of the year, which totalled £30.1 billion, but also represents a 3 per cent decrease from the second quarter of 2010, when the figure was £34.4 billion.

CML chief economist Bob Pannell says: "The UK economy continues to experience disappointing economic growth, strong consumer price pressures, falling disposable incomes and an uncertain jobs market.

"This backdrop weighs negatively on purchase decisions relating to home ownership. By contrast, landlord activity appears to have picked up recently and, with evidence of strong rental demand, this should help to underpin activity over the coming months.”

Overall, lending in the first half of 2011 totalled £63.7 billion, which is slightly below the first six months of 2010, where lending figures stood at £64.1 billion.

Paul Hunt, managing director of Phoebus Software, says: “Having weathered a tough year, there are signs that lenders’ liquidity is improving and as a result their confidence has begun to grow.”

 David Whittaker, managing director of Mortgages For Business, added:“The buy to let market has been key to underpinning lending activity over the first half of 2011.

Professional landlords and investors have taken advantage of stagnant prices, rising rents and substantial yields and this has pushed activity up.

Only when owner occupiers are confident of economic conditions and lenders are willing to loosen their criteria further are we to see a substantial recovery in the overall market. But until that moment comes, investors will continue to make hay while the sun shines.”  

The CML figures are estimates based on lending figures provided by a sample of lenders that represent around 80 per cent of the mortgage market. They can be seen as a reliable early indication of official Bank of England lending figures published later in the month.