Figures published by the Council of Mortgage Lenders show that mortgage lending rose by 15% from an estimated £11.4bn in May to £13.1bn in June.

In comparison to last June, the gross lending was also 7% higher. In June 2009 mortgage lending stood at £12.2bn and gross lending was an estimated £35bn in the second quarter of 2010. This is up 17% from the first quarter of 2010 and 7% up from the second quarter of 2009. The lending of the first half of the year was unchanged from the first half of 2009,

Paul Samter , The Council of Mortgage Lenders (CML ) economist said that although the estimated figures indicated  that there was a seasonal pick-up, the £13.1bn of lending was “still indicative of low levels of activity”.

“There are signs of house prices stabilising and more properties coming on to the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained,” he said.

Mr Samter went on to say that the regulatory burden will be increased on lenders because of the consultation paper on responsible lending and this will make it more difficult for borrowers to access credit. He also claimed that the “austere” budget along with job losses expected in the public sector also cast a doubt on housing market prospects.

The continuing low interest rates in the UK along with the increase in capital gains tax being less than expected has meant that many buy-to-let investors are not holding on to their properties instead of flooding the market and depressing overall prices.

Brian Murphy, head of lending at independent mortgage broker Mortgage Advice Bureau said: “With looming public sector cuts, taxation rises, a freeze on wage increases and inflationary pressures, we are likely to see lending tail off during the second half of 2010, with buyers likely to take a wait-and-see approach. There’s every chance that mortgage lending this year will be below the level of lending in 2009.”

Jonathan Samuels, CEO, property finance specialists, Drawbridge Finance, agreed: “Mortgage lending may be up slightly, primarily due to seasonal factors, but in the short-term both the mortgage and property markets remain delicately poised.