The amount of loans granted for first time buyers has dropped to a new low as figures reveal that successful applications have halved within a year.

Records from the Council of Mortgage Lenders (CML) indicate that the number has dropped to 18,100 in June, a decrease 46 per cent from June last year. First time buyers are now finding it increasingly more difficult to get that foot on the property ladder with almost all signs pointing to further turmoil ahead.

Unfortunately well documented tales of slow sales of property are not unfounded as mortgage lenders impose a strict lending requirements to reflect the current climate..

Bob Pannell, head of research at the CML, reiterated that the gloom may remain for an indefinite period. “Mortgage lending activity remains relatively weak and will decline further in the coming months as a result of funding constraints and lower consumer demand,” he said.