Gross mortgage lending was up £1.8bn in June, a 16% increase on the previous month, according to Council of Mortgage Lenders (CML) figures.

It takes gross lending for the second quarter of 2011 to an estimated £33.5bn, an 11% increase on the first three months of 2011 (£30.1bn) lending for the first six months of the year reached £63.7bn.

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

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.

"UK households have made progress in bringing down debt burdens over the past year or so, this largely stems from the restricted levels of new mortgage lending, unsecured write-offs and nominal income growth.