Further evidence has emerged that the housing market is growing at a stronger than expected pace amid fears of a new 'bubble', driven by Government funding schemes.
The Council of Mortgage Lenders (CML) said that lending soared by 21% in May compared with April, with an estimated £14.7bn worth of mortgages advanced in the month.
It was, the CML said, the highest level of estimated monthly gross lending since October 2008.
The body had previously predicted that activity would pick up this year, boosted by Government efforts to unblock the housing market such as its Funding for Lending scheme, but the CML said that May's strong acceleration surpassed even its own expectations.
It suggested the strong uplift could be in part down to the bad weather seen earlier this year creating "pent up" demand.
Its chief economist Bob Pannell said: "Funding conditions, helped by the Funding for Lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability and a gradual resumption of lenders' risk appetite.
"While the direction of travel is clear and fits well with the more positive housing surveys from RICS (Royal Institution of Chartered Surveyors) and others, our forward estimate does imply somewhat stronger house purchase activity than we had been expecting.
"This may reflect a degree of pent up sales following the extended spell of poor weather earlier this year".
Lenders have been slashing their mortgage rates and mortgage availability has generally increased since the Funding for Lending scheme, which gives lenders access to cheap finance to help borrowers, was launched last August.
Other Government schemes such as NewBuy and Help to Buy have been specifically launched to help people with smaller deposits.
Earlier this week, property search website Rightmove said that house sellers' average asking prices had broken through the quarter of a million pounds milestone for the first time.
The figure added to concerns that the Government's schemes risk causing a housing "bubble", with mortgage borrowers trying to stretch their finances too far as happened before the financial crisis.
The Chancellor George Osborne has previously stated that the schemes have a limited shelf life and were a response to would-be homeowners being unable to get on the housing ladder.
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