Despite an increase in the level of gross mortgage lending, the results still remain subdued, it has been said.

The Council of Mortgage Lenders (CML) revealed a 26 per cent rise in the rate of mortgage lending between June and July.

However, this figure still remains £11 billion lower than the July average seen over the last seven years, regardless of the typical seasonal rise experienced over summer months.

"We anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge," noted CML economist Paul Samter.

He said that the market pickup is likely to be limited as there are "so many obstacles in place" in the current economic climate.

The CML revealed earlier this month that there had been 11,400 repossessions in the second quarter of the year, equating to a ten per cent decrease on the previous quarter.

Low interest rates are believed to be part of the reason behind the fall in possession cases.