The number of mortgages approved by the major banks in August was up 81% from the same month a year ago when the housing market was in a slump.

The British Bankers Association (BBA) said the annual rise was exaggerated by the low lending levels of a year ago.Approvals for house purchases in August dipped slightly compared with July after seven months of month-on-month rises, the figures show.

The BBA said major banks had been more active than other lenders recently. However, the number of homes being put up for sale was still considered to be low.

There were 38095 mortgages approved for house purchases in August by the major banks compared to 21001 in August 2008. It was also reported that during the recession households were not taking on extra debt with jobs at risk and the economic conditions uncertain.

David Dooks the BBA’s Statistics Director stated “In reaction to the economic conditions, consumers appear to be building up their savings and controlling their appetite for unsecured borrowing”.

The total amount borrowed on credit cards by consumers was down 13.6% in August compared with the same month a year ago at £5.6bn.