Mortgage lending falls Published: 03/10/2008

Mortgage lending has fallen dramatically as buyers hold off on buying a property until the housing market stabilises.

Figures from the British Bankers' Association show there was a 1.7 per cent fall in the average property price in September.

Tighter lending conditions and fewer mortgage products have also hindered the mortgage market as prospective buyers find it increasingly hard to get a good deal.

On average, the price of a property in the UK now stands at £161,797 – 12.4 per cent less than this time last year.

September represented the 11th consecutive month of property price falls, but the monthly rate of change has been roughly the same since July.

Fionnuala Earley, chief economist at Nationwide, said: "The less volatile three-month-on-three month series has also barely changed for the last three months, after accelerating in the first half of the year.

"This may suggest the beginning of some stabilisation in the pace of house price falls."

Search for sold prices in your area  © Copyright.