Banks to blame for low lending figures

"I am not surprised to see lending down by 48% from this time last year, as the banks continue to stifle the recovery of the housing market. Our research has shown that currently one in four people recognise the banks as the biggest barrier to the property market at present.

"When prospective buyers are granted a mortgage in principle they are then faced with further difficulties in actually getting the banks to release the funds. A number of NAEA members across the country are reporting complications for homebuyers who have mortgage approval but are unable to obtain the funds from the lenders. We believe this is due to the banks limiting the amount they are prepared to lend on any given day.

"There are plenty of prospective homebuyers out there, but the banks are once again acting as an impediment to the market. Whilst we don't endorse the reckless lending we were seeing 18 months ago, the current situation is farcical and does nothing to improve the housing market and indeed the wider economy."