Mortgage lending rose by 15% in June to an estimated £13.1bn from £11.4bn in May, according to the Council of Mortgage Lenders. Gross lending was also 7% higher compared to the same month last year.
Quarterly lending figures also improved, with gross lend in the second quarter of 2010 up 17% on the previous three months of this year and 7% up from the second quarter of 2009.
The CML said June's increase was just a seasonal pick-up and that lending remained subdued.
"There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs," said the CML's economist CML Paul Samter.
"This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained," he added.
He added that the consultation paper on responsible lending would increase the regulatory burden on lenders and could make it harder for borrowers to access credit.
The "austere" budget and public sector job losses have dented prospects for the housing market.
The main monthly house price surveys, from Halifax and Nationwide, indicate prices are leveling off.
While the Royal Institution of Chartered Surveyors has warned house prices could start to fall as the number of sellers start to out number buyers.
