The gloom surrounding the property market has deepened as lending figures showed double digit declines for house purchase and remortgaging in October.
Lending for house purchases fell 12% year-on-year to £6.7 billion in the month, while loans for remortgages slumped 24% to £3.1 billion, according to the Council of Mortgage Lenders (CML).
The CML also revised down figures for overall lending in October, to £11.6 billion, which is 15% lower than a year ago and 6.5% below the level seen in September.
It had previously estimated that lending fell 9% year-on-year and was unchanged from September.
Month-on-month, the CML said lending in October for home purchases dropped 6% to £6.7 billion.
The drop in lending comes after declining house prices and because of a rush to take advantage of a stamp duty holiday a year ago, according to the CML.
The lending figures are the lowest for October since the CML started taking monthly readings in 2002.
Loans to first time buyers, who are a key driver of growth in the housing market, declined 17% year-on-year and 9% month-on-month to £2 billion.
There was some evidence mortgage providers are starting to lend money more freely again as the average first time buyer borrowed 80% of the value of a home, compared to 76% in September. But drops in house prices meant loans were less as a proportion to pay.
Lending for home movers fell to £4.7 billion, a 10% drop year-on-year, said the CML.
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