Confidence in the market is rising

The figures suggest that consumers' confidence in the property market remains strong, despite repeated suggestions that the UK's inflated housing market may collapse.

House purchases now account for 48% of all lending - the highest proportion since last December.

The overall figure for mortgage lending - which includes remortgaging and mortgage extensions - was slightly lower than the during the previous month.

'Robust'

The CML said that, while the remortgaging market still remained strong, there was evidence of a swing back towards lending for house purchase from remortgaging.

(There could be) unpleasant financial consequences further down the line Philip Robinson, FSA Lenders warned to be cautious

Figures from the British Bankers' Association (BBA) also confirmed that demand for mortgages was still robust.

"Though the growth in major banks' mortgage lending was slightly weaker than in August, the trend remains strong and robust," said David Dooks, the BBA's director of statistics.

Signs of more house buyers entering the market suggest that property prices will continue to find support.

The latest information from the Royal Institution of Chartered Surveyors (Rics) suggested that house prices rose for the first time in six months in August.