Mortgage approvals hit record low in June

Approvals for new home loans fell to a record low last month, Bank of England data showed yesterday, pointing to further sharp falls in house prices in the months ahead.

The bank said mortgage approvals fell to 36,000 last month from a downwardly revised 41,000 in May. That was less than a third of the level this time last year and underscores the extent to which credit conditions have tightened.

Analysts had forecast a reading of 37,000.

"Even if they don't fall any further, these numbers are consistent with house prices continuing to fall quite rapidly," said George Buckley, chief UK economist at Deutsche Bank.