New bleak light on housing

Commenting on Royal Institution of Chartered Surveyors and Council of Mortgage Lenders figures, Louise Cuming, head of mortgages at moneysupermarket.com, said: "The figures continue to paint a bleak picture for the mortgage and housing industries, with estate agents, builders and consumers all suffering.

"I have some sympathy for lenders, who are stuck between a rock and a hard place. The Government has made an enormous investment in the banking sector and asked for a revival of lending figures, but it is impossible to see how providers can meet this. Lenders continue to be risk averse. Nationwide, for example, has increased its minimum deposit for intermediary business to 15 per cent and its mortgage limits are heading down towards four times your salary. When we consider lenders' lack of appetite for risk together with shaky consumer confidence levels, it is impossible to see a return to the lending levels of last year."