Economists say that pressure is growing on the Bank of England as the number of mortgages taken out rises by 4% in June, suggesting that tighter borrowing criteria imposed by the financial regulator this year had only cooled the market for a few months.

The CML said a survey of the biggest lenders showed that 60,500 house purchase loans, worth £10bn, were taken out during the month, an increase of 5% by number and 6% by value on May’s figures. Compared with June 2013, the figures were 15% and 23% higher respectively.

More than half of those loans were taken out by home movers, although the number of first-time buyers showed a bigger month-on-month increase, making up slightly less than half of the total at 28,600.

The central bank is now under pressure to increase rates in response to the booming economy and the sharp increase in the number of people in work. Rising house prices have also triggered calls for an increase from the current historic low base rate of 0.5% to deter buyers and take the heat out of the market.