Homes: Housing fears as mortgage approvals fall

A total of 47,643 loans were approved for people buying a property during the month, down four per cent on May and below the 50,036 average for the previous six months.

The figures come after building society Nationwide said a shortage of buyers last month sent house prices falling for the first time since February, with average prices dipping 0.5 per cent.

It said the fall came as househunter numbers dwindled amid uncertainty over jobs and the wider economy as the Government ramped up its austerity drive.

The scrapping of home information packs also tempted more sellers on to the market.