Mortgage application approvals fell in August, according to new figures.
The Mortgage Advice Bureau (MAB) has reported a 12 per cent drop in lending since July.
Commenting on the data, MAB's head of lending Brian Murphy said: "Although mortgage activity typically drops off in August due to the summer holiday period, the decline this year is certainly larger than we would expect on seasonal factors alone."
He added that lending was unlikely to pick up before next year, given recent recorded declines in prices.
Purchase mortgage applications fell by 10.8 per cent and remortgage applications saw a 15.3 per cent drop.
The report comes on the back of conflicting monthly house price indexes from Halifax and Nationwide.
Nationwide reported that house prices were stagnating, with the three-monthly rate of change falling to zero per cent after a second decline last month.
However, Halifax's index revealed a 0.2 per cent rise in August, which reversed the decline seen in the second quarter of 2010.
See Also: Property News (6701)
Date Published: 13 September 2010
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