Mortgage lending down again

The Bank of England has revealed that last month saw a further fall in mortgage lending for house purchases.

In its latest statistical release, the bank revealed that the increase in the level of lending to individuals was, at £4.1 billion, below both the April level and the six-monthly average.

The number of mortgages approved for house purchases, at 42,000, was also down on April's figures.

Reflecting on the situation, the managing director of Connells Survey & Valuation Ross Bowen said: "The squeeze on credit is severely constricting the housing market, even though there is still strong underlying demand for housing."

He called for action to help young first-time buyers who he stated are "frozen out of the market", suggesting more moves to improve liquidity will be more effective than interest rate cuts.

Those who are struggling to get on the housing ladder because of the credit crunch may consider the self build method as a cheaper solution.