Loan approvals fall for sixth month

Only 47,185 loans were approved for people buying properties during the month, the lowest level since February, according to the Bank of England.

The subdued level of transactions, which is well below the 70,000 to 80,000 approvals a month that are considered to be consistent with a stable market, will continue to put downward pressure on house prices.

House prices also fell for the fifth month in a row during November as demand from potential buyers dropped at its fastest pace for nearly two years.

The average cost of a home in England and Wales fell by 0.8 per cent during the month to stand at 155,000, following a 0.9 per cent slide in October, according to property intelligence group Hometrack.

Falls were smallest in Yorkshire and Humberside at 0.4 per cent.