RICS: CML mortgage data

Commenting on the CML data, Simon Rubinsohn, RICS chief economist said: "CML data released this morning provide clear evidence that the credit crunch is now having a meaningful impact on the availability of finance for home purchases. This ties in neatly with the results of the latest RICS survey which showed new buyer enquiries continuing to slide. Not only are the volume of mortgages falling sharply but loan to value ratios are also being reduced. This is consistent with much other anecdotal evidence.

"First time buyers are very much under the cosh in this more hostile environment. While any increase in the stamp duty threshold in tomorrow's Budget would provide borrowers trying to take their steps on the housing ladder with some assistance, the scaling back of lending activity is likely to limit the extent of any benefit. In the near term, the housing market is likely to continue to soften."