The British Bankers' Association (BBA) has revealed that mortgage approvals have fallen to an all time record low, falling by almost 67% over the course of just a year.

Records began in 1997 and the BBA has discovered that approvals are now settled at the low figure of 21,118.

It indicates the decline in the housing market is gathering speed as lenders place increasingly stringent restrictions on credit.

The figures reflect the general apathy amongst lenders and the housing market amidst the credit crunch. British house prices have fallen by almost 10% since their peak last year and are continuing to decrease.

Estate agents, homebuilders and retailers are all feeling the brunt of the economic conditions with total mortgage lending rising by £3.8 billion last month which is far below the previous six month average. To add to the housing woes, the number of British homes changing hands has almost halved.