The Council of Mortgage Lenders (CML) has estimated that gross mortgage lending totalled £18.6 billion in August.
This is 5% lower than July (£19.7 billion) but 13% higher than August last year (£16.4 billion) and the highest lending total for an August since 2008 (£19.3 billion).
The CML’s chief economist Bob Pannell said: “The narrative of recovering house purchase and buy-to-let activity continued through August. However, it is important to be aware that this picture is being flattered by strong seasonal factors through the summer period.
“A gentle slowing of lending activity may now be in prospect, as a result of the continuing impact of tighter lending rules and a softening of the London market.”
Paul Hunt, managing director at Phoebus Software Ltd, added: “There has been a noticeable slow down over the holiday period so the drop in figures is no surprise, however as these figures typically reflect applications from three months ago, it makes it clearer that that MMR is having an effect.
“The fact that figures are so much higher than last year however shows just how far the market has come in the last 12 months. I fully expect there to be seasonable factors at play here, but don’t expect higher figures again until the end of the year as the August holiday period will inevitably have a knock on effect on completions in September and October.”