An increase in mortgage acceptance levels, rising prices and the extension of the Government’s Help to Buy scheme has boosted confidence in the property market, according to estate agents.

Mortgage lending has reached its highest level since the financial crisis erupted five years ago.

A total of 68,212 loans were advanced to home buyers in September, research by chartered surveyor e.surv found.

The figure was 10 per cent up on August and a hefty 36 per cent higher than September last year.

Separate research showed the price of the average house rose by 3.8 per cent in the past year, and just this month, David Cameron brought forward the start date of the latest phase of Help to Buy.

Purchasers now only need a minimum deposit of five per cent whether the property is old or new, which means more people than ever can now obtain a mortgage.

It takes the required deposit for an average mortgage down from £33,948 to £7,218 nationally, and from over £60,000 in London to £12,800, according to data from agents Spicerhaart and the Council of Mortgage Lenders.

Experts hope monthly mortgage approvals could reach around 70,000-75,000 by the end of the year, compared with a monthly average of around 90,000 before the 2008 financial crisis.

Michael Cohen of Austin Residential in Uxbridge, said: “We are in an area that is reasonably affluent so maybe we don’t have so many problems with mortgage acceptances, but a few years ago people were coming in with their mortgage certificate in their hands and saying they had an agreement in principle, but the lender had then changed the criteria and they were not able to lend any more and they needed a bigger deposit.

“That is not happening so much any more.

He added: “We are getting a lot of people asking about Help to Buy, the general inquiry level has picked up.

“How many transactions it will lead to is hard to say because it’s just been launched, but for the short to medium term it has got to be good for the market.

“There may be people waiting in their houses who want to trade up and have equity in them and want to move.

“Now, if they have the opportunity to borrow up to 95 per cent of the purchase price, they might move.

“And first time buyers in rented accommodation may have £20,000 for a deposit but not £60,000.

“If they can get a mortgage and buy, that will release more rental stock and the whole thing will start to move.”