Latest figures from the Council of Mortgage Lenders reveal gross mortgage lending last month hit its highest level for the month of May since 2008.

The trade body estimates lending reached £18.2 billion in May, up 4 per cent on the previous month and and 14 per cent higher than May 2015. The only time May lending was higher was during the start of the credit crunch in 2008 when it hit £23.7 billion.

However, CML senior economist Mohammed Jamei said lending was still “somewhat dampened” following the rush the market witnessed in the first quarter to beat stamp duty hikes on second properties.Meanwhile the body has rebuffed claims that house prices could fall as a result of the UK’s decision to leave the European Union.In its market commentary, Mr Jamei said while he expects activity levels to fall below “what would otherwise be expected” in the near term as a result of uncertainty, house prices will not be significantly impacted.

“Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance,” he added.Last week property experts including Hometrack’s insight director Richard Donnell predicted prices would face downward pressure with Mr Donnell claiming a “rapid deceleration in house price growth” was likely.