Home loan approvals slump to 19-month low

Mortgage approvals for house purchase slumped to a 19-month low during October as potential buyers continued to stay away from the market, figures showed today.

Just 30,766 home loans were approved by the major banks for people buying a property during the month, the lowest level since March 2009, when house prices were still falling, according to the British Bankers' Association.

Total mortgage advances also dived to a near 10-year low, with just £7.6 billion lent, a level last seen in February 2001.