Figures from the Council of Mortgage Lenders (CML) for August showed that its 'other lending' category - which covers buy-to-let - had increased by almost 40% year-on-year, This Is Money reported.

The figures showed that £7.8 billion in loans were taken out in the 'other lending' category, making up nearly a quarter of the £34 billion borrowed during the month.

The CML said the figures related to the period before the problems at Northern Rock began to appear.