New home loans 'fall 71%'

Mortgage lending has fallen 71 per cent since last year, acceding to new figures from the Bank of England.

The 33,000 mortgages that were approved during July represent a new record low and the figure is down six per cent from the 35,000 approved in June, the Bank said.

Furthermore, it was reported that compared to this month last year approvals are down 71 per cent from 114,000, as lenders aim to tighten criteria.

Reuters claimed this represented the 12th consecutive fall and indicated that house prices would continue their descent over the coming months, which could dent the hopes of homeowners planning to sell.

"It is at painfully low level so we are still facing the prospect of falling prices for at least another year," Alan Clarke, an economist at BNP Paribas told the news provider.

Michael Saunders, a Citigroup economist, also told Reuters that the economy "probably" is in recession and that prospects for the UK economy are "grim".