RICS: Bank of England mortgage approvals

Commenting on Bank of England mortgage approvals, Simon Rubinsohn, RICS chief economist said: "The latest weak data on mortgage approvals highlights the continuing problems facing borrowers trying to secure finance to purchase property. Lenders are continuing to tighten up on the conditions accompanying new loans making it hard for first-time buyers to take advantage of the modest fall in house prices seen over the part few months.

"The 58,000 mortgages approved in April is roughly half the total sanctioned in the same month a year ago. This highlights very clearly the real problem facing not just the property market but also the wider economy. A collapse in transactions of this magnitude has major implications both for consumer spending and a wide range of ancilliary industries. Although a supportive response from the Bank of England is improbable in the near term, the persistence of such a trend could force the hand the authorities as autumn approaches."