Net lending to companies rose last month for the first time since January in a sign that business confidence is improving as the British economic recovery gathers pace.

The British property market showed signs of stabilising last month after figures today revealed a surprise increase in January house purchase mortgage approvals and a hike in remortgaging activity.

There was fresh evidence of a cooling housing market in the UK today after mortgage lending slowed further in November, the British Bankers Association (BBA) said.

Mortgage demand in the UK bounced back in May with the highest number of approved home loans of the year so far.