Gross mortgage lending reached £28.7bn in May, according to the Council of Mortgage Lenders (CML).

The lending tally was 18% higher than in April and almost 30% higher than in May 2005. In fact, the lending figure for May 2006, was only 0.5% below the record for a single month, which was recorded back in July 2004 (£28.9bn).

Michael Coogan of CML said: "The recent lending market has been consistently strong. Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher priced properties, and strong consumer confidence.

"We expect demand to moderate later this year, but it looks set to stay robust for the immediate future - although property viewings might be affected by World Cup fever."