Gross mortgage lending continued to grow in June despite the political upheaval of the General Election, trade body UK Finance has predicted.

It forecasts that gross mortgage lending reached £22.1bn in June, 9% higher than May’s lending total of £20.3bn, and 3% up on last year.

This takes gross mortgage lending for the second quarter of 2017 to an estimated £60.3bn, up 3% on the first three months of the year and 6% more than the same period in 2016.

Mohammad Jamei, senior economist for UK Finance, said: “A period of belt-tightening now seems to be under way as inflation begins to erode consumer spending power, and consumer confidence weakens.

“Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year.

“Looking ahead, housing market activity is likely to reflect economic conditions: a deterioration would likely dampen first-time buyer numbers and home owners remortgaging – the factors that have supported lending recently.”

Commenting on the figures, Jeremy Duncombe, director of the Legal & General Mortgage Club, said: “The figures show that gross mortgage lending remained strong in June, despite the political rumblings.

“However, the issue of long-term affordability persists.

“With average house prices now six times higher than the average salary, and up to 11 times more in London, many want-to-be homeowners are unable to get on the housing ladder.

“A recent study by Nationwide Building Society showed buyers could borrow up to £11,500 more if energy efficiency ratings were to be factored into lending criteria, and it is these types of initiatives that need to be considered as part of the solution.

“If buyers can responsibly borrow enough to keep up with price inflation, rather than waiting potentially years longer to save for a deposit, it will give them a greater chance of finally getting on to the increasingly elusive property ladder.”