MORTGAGE lending broke more records in July as the number of borrowers increased again.

A total of £25bn was advanced during the month, 12 per cent more than during June, which was also a new high, according to the Council of Mortgage Lenders (CML).

There were also signs that first-time buyers were returning to the market, with their numbers increasing to nearly 35,000 from 30,000 the previous month, although they still accounted for only 30 per cent of all loans.

Lending for house purchase was £11.6bn, 20 per cent higher than in June and the highest figure since August last year.

Remortgaging was also strong during July at £10.7bn, which was the second highest monthly figure on record.

Michael Coogan, CML director general, said: "July's figures support the picture of a housing market that remains stronger than expected.

"The apparent increase in first-time buyers in July is welcome, as their numbers have been seriously depleted in recent months."

The Royal Institution of Chartered Surveyors (RICS) agreed that the housing market was buoyant, with sellers holding the upper hand.

Mike Abel, housing spokesman for the RICS in the North-East said: "The market is slowing down in the North-East but prices are still rising, just not as fast as they were earlier in the year."