The lending figure has jumped from £12.7bn in June but represents a 36% decline from the £24.9bn recorded in July last year.

The CML says the figures point to a modest improvement over the summer following "an exceptionally weak winter."

Lending figures still remain at historic lows as July’s £16bn of gross lending is the lowest July figure since 2001 and £11bn lower than the July average over the previous seven years.