New data shows the number of mortgages approved for house purchase rose for the fifth month in a row during June to the highest figure for more than a year.
A total of 47,584 loans were approved for people buying a home, the greatest number since April 2008, according to the Bank of England.
But net lending, which strips out redemptions and repayments, remained at historically low levels. The number of mortgages approved has risen steadily since February as buyers return to the market.
June’s approval figure is the highest since last April, when 58,000 loans were granted, and is a seven per cent increase on May’s revised 44,169 number.
Net lending rose slightly to £343 million, up from a revised £331 million the previous month.