Figures from the Bank of England have revealed that consumer debt has fallen for the first time since records began in 1993.

Total debt owned by individuals now stands at £1.457 trillion after figures fell in July when borrowing fell by £600 million.

It is believed that the reduction is due to £418 million worth of mortgage repayments during that month.

The BoE stated that it had also seen a net repayment of consumer credit of £217 million, while net credit card lending fell to £92 million.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "The further rise in the number of mortgage approvals during July is testament to the continuing recovery in the housing market. However, the sharp fall in net lending during the month demonstrates that lenders still remain a little hesitant to increase the total pot of money committed to the mortgage market.

"Significantly, mortgage repayments increased to their highest level in July, since March, implying that existing funds are being recycled rather than new monies being added to the mortgage market.

"We expect mortgages for new purchases to continue to edge upwards over the coming months, ending the year between 55,000 and 60,000, but this level of activity still remains low from a historical perspective."