UK Finance has estimated that gross mortgage lending totalled £22.1 billion in June.

This is 9% higher than May’s lending total of £20.3 billion, and 3% higher than the £21.5 billion lent in June last year.

Gross mortgage lending for the second quarter of 2017 was therefore an estimated £60.3 billion. This is a 3% increase on the first quarter of this year and a 6% increase on the £57.1 billion lent in the second quarter of 2016.

UK Finance’s senior economist, Mohammad Jamei, said: “A period of belt-tightening now seems to be underway as inflation begins to erode consumer spending power, and consumer confidence weakens. Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year.

“Looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.”

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Today’s figures show that gross mortgage lending remained strong in June, despite the political rumblings.

“However, the issue of long-term affordability persists. With average house prices now six times higher than the average salary, and up to 11 times more in London, many want-to-be homeowners are unable to get on the housing ladder. A recent study by Nationwide Building Society showed buyers could borrow up to £11,500 more if energy efficiency ratings were to be factored into lending criteria, and it is these types of initiatives that need to be considered as part of the solution. If buyers can responsibly borrow enough to keep up with price inflation, rather than waiting potentially years longer to save for a deposit, it will give them a greater chance of finally getting onto the increasingly illusive property ladder.”