Lending secured on dwellings increased by £1.7 billion in February, compared to the average monthly increase of £1.3 billion over the previous six months, the Bank of England has reported.

The three-month annualised and 12-month growth rates were 1.6% and 1.1% respectively. Gross lending secured on dwellings was £17.8 billion and repayments were £15.6 billion.

Richard Sexton, director of e.surv chartered surveyors, said: “Home lending to high LTV borrowers is charging ahead, even as total mortgage lending tailed off slightly in February. Monthly high LTV loans have topped 11,000 for the first time in six years, as banks increase lending to borrowers with smaller deposits, and as rates remain low. More first-time buyers are using Help to Buy to get on the ladder while they can, and before prices clamber out of their reach. And banks are forging forwards with lending in advance of the introduction of new MMR regulations in April.

“Lending may be bouncing back, but we are a still some way off bubble territory. Home lending is still 45% lower than pre-crash levels, and stress testing for new borrowers is rightfully now much tighter. But crucially the property market remains hampered by sluggish home-building. A lack of suitable stock – particularly affordable housing for first-time buyers – is pushing up property prices, and the problem is becoming more pronounced as the number of aspiring homeowners continues to outpace new housing starts. It’s forcing the hand of many first-time buyers. There may well be more confidence in the economic recovery, but there is clearly some anxiety among buyers about whether they will be able to afford to buy if they don’t get on the ladder imminently.

“The clear and vital solution is to drastically upscale construction, alleviating any concerns by giving buyers back the option to buy later and more importantly keeping house price rises at a sustainable rate.”