Loan approvals and values reached a nine-year high for September, according to the Council of Mortgage Lenders.

The trade body says home owners borrowed £11.4bn for house purchase, down 7% month-on-month but up 4% year-on-year, and took out 62,900 loans, down 5% on August but up 3% on September 2015.

First-time buyers borrowed £4.9billion, down 4% on August but up 14% on September last year. This equated to 31,500 loans, down 1% month-on-month but up 13% year-on-year.

The overall house purchase lending figures are the highest for September since 2007 and the biggest volume for first-time buyers since the same month in 2006.

Meanwhile, landlords borrowed £2.8billion, down 7% month-on-month and 22% year-on-year. This came to 18,200 loans in total, down 6% compared to August and 26% compared to September 2015, showing the lull many predicted would happen as a result of the Stamp Duty changes.

The CML says the amount borrowers are paying as a percentage of their household income to service capital and interest rates also reached a historic low in September for both first-time buyers and home movers, at 17.8% and 17.7% respectively.

Affordability metrics for first-time buyers saw the typical loan size decrease to £133,000 from £136,400 in August. The average household income also decreased slightly from £41,000 in August to £40,200 in September. This meant the income multiple was slightly down from 3.56 to 3.53.

The average amount borrowed by home movers in the UK also decreased to £171,000 in September from £175,000 in August, while the average home mover household income also decreased to £55,100 from £55,400. The income multiple for the average home mover went from 3.27 to 3.26 month-on-month.

Paul Smee, director general of the Council of Mortgage Lenders, said: “House purchase activity appears to have steadied. We may not be seeing huge increases in activity on the scale of 2013-14 but there is a consistency in the levels in recent months.

“Mortgage affordability reached an historic low in September, for both first-time buyers and home movers, which partly reflects the re-pricing of mortgages following August’s base rate cut. This should help turn strong appetite for home-ownership into a reality as we approach the closing months of the year.”

Responding to the figures, David Brown, chief executive of Marsh & Parsons, said: “Low interest rates have improved affordability for buyers and helped drive activity for those who can get great deals.

“Therefore, while uncertainty remains about the outcome of Brexit negotiations, confidence in property remains high for hopeful home buyers, investors and sellers.

“In London, particularly, the market could still be buoyed by the weaker pound and added interest from overseas buyers – boosted by results of the US Presidential election as Americans potentially seek solace elsewhere.

“What is important now is that the Chancellor uses his upcoming Autumn Statement to consider measures to help drive activity in the property market and help buyers on to the property ladder so that momentum is maintained.”