House prices will not see a significant recovery in the coming months, the Council of Mortgage Lenders has warned, as figures show mortgage lending dropped further last month.

Despite a pick-up in several house price indices in recent weeks, the CML insisted a lack of affordable mortgages would continue to restrict home buyers’ activity.

It suggested that a moderate improvement in house purchase lending in May had been offset by very low remortgaging volumes as borrowers stay with existing deals. CML said mortgage numbers fell 2% in May after a decline of 9% in April.

Daily Telegraph