New mortgage lending reached its highest level in 10 months in February, according to data released by the British Banking Association.

While businesses around the country will be pleased with the news - the housing market is a major indication of the health of the economy - mortgage approvals are still only slightly above the record lows of last autumn.

"Activity in the housing market is a better correlation for spending than house prices and is a leading indicator," said Ben Broadbent of Goldman Sachs.

New mortgages rose by 16% to 28,179 in February from January's 24,278 - the highest number since April. However, this figure is still 31% lower than the same time last year.