Gross mortgage lending rose 15% last month, but experts attribute the increase to "seasonal pick-up".
Figures from the Council of Mortgage Lenders (CML) show lending rose to an estimated £13.1bn in June, up from £11.4bn in May. This also represent a 7% increase from the £12.2bn recorded in June last year.
Gross lending in Q2 was an estimated £35bn, up 17% on the first three months of the year and 7% on the same period in 2009.
The CML says lending in the first half of 2010 remained unchanged from H1 2009, at £65bn.
CML economist Paul Samter says: "Our gross lending estimate of £13.1bn in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.
"There are signs of house prices stabilising and more properties coming onto the market following the abolition of HIPs.
"This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained."
Samter adds the FSA's Mortgage Market Review (MMR) may have a negative impact on UK lending levels.
"The FSA has outlined a clear direction of travel as part of its MMR," he says. "The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit."
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