Earlier this week, the Council of Mortgage Lenders (CML) reported that gross mortgage lending increased in June, with the total up 15% on a month earlier and 7% year-on-year.

The figures have prompted comment from LSL Property Services director, David Brown, who makes the point that the lending market is still very difficult for landlords.

According to LSL, in the first quarter of 2010 buy-to-let mortgage lending was less than a third of the level seen in 2008.

Mr Brown declares: “Despite glimmers of hope that more products are entering the market in the last few months … we will not see a return to the level of lending of two years ago in the foreseeable future.”

He adds: “Mortgage finance is still the main obstacle for future property investment … until lenders offer cheaper, high value buy-to-let mortgages to investors, Britain will continue to experience a housing shortage.”

Meanwhile, demand from tenants is likely to increase as proposed new measures from the Financial Services Authority (FSA) could make it harder for potential first-time buyers to secure a mortgage.

The regulator has made it clear that it wants to make lenders ultimately responsible for assessing a consumer’s ability meet their mortgage payments, verifying borrowers’ incomes in every case.