It has been revealed by UK lenders, that the number of loans for homebuyers granted in June increased by 23%, compared to May.

Around 45,000 home loans were given for property purchases, just six per cent lower than the same month in 2008, the Council of Mortgage Lenders, (CML) announced.

The group stated that the housing market still has a long way to go, but it seems to be stabilising.

However, first-time buyers were still being squeezed, as they required an average deposit of 25% of a home value, before they can receive a mortgage.

Despite this, first-time buyers - who on average get onto the property ladder at the age of 28, were granted 17,200 loans in June, worth £1.9bn. This jumped up by 26% on the number given out the previous month.

CML economist, Paul Samter, said: "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.

"There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels."