Homeowners pay off mortgage debt

Commenting, Catherine Penman, head of research, property consultancy, at Carter Jonas, said: "Homeowners are continuing to pay down their mortgage debt, although not at quite the same levels they were a year or so ago.

"While this is a positive development for the property market, either helping homeowners out of negative equity or enabling them to secure better rates at lower LTVs, there are obvious ramifications for the economy as a whole.

"The more that is spent on paying down mortgages, the less that is spent on the high street, which is essential to the recovery of the economy.

"In the short term, debt paydown is also restraining property transaction levels, although the fact that conservative spending patterns remain a priority for the average UK household is no bad thing given the profligacy of the past decade."