Mortgage lending rose nearly 7 per cent last month, but the Council of Mortgage Lenders (CML) warned of "continuing weakness" in the market.

Figures released this morning by the CML showed lending in October totalled £18.7 billion, after an "admittedly weak" September, when home loans totalled £17.5 billion.

However, the CML cautioned against placing too much significance on the rise and said it did not represent the bottom of the market.

With figures moving along at low levels, the CML said it was likely that there would be some volatility and a comparison of year-on-year figures indicates how much the market has been depressed.

In October 2007, gross lending totalled £33.3 billion. Third-quarter lending last year stood at £93.5 billion but the figure for the same period this year is £61.83 billion.

However, Michael Coogan, director general of the CML, said that the outlook for the housing and mortgage markets was one of "continuing weakness".

"Consumer confidence is now being affected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing shortage of mortgage funding," Mr Coogan said.

He urged the Government to publish the Crosby review into mortgages on Monday as part of the Pre-Budget Report, and to announce firm measures to stimulate an increase in loans.