For the first time since records began in 1993, figures have shown that people paid of more mortgage debt than was taken on during the month of July.

One reason for the figures is that many taking advantage of the new low interest rates especially those on a tracker mortgage, the other reason is that many are consolidating their debts during the rescission shunning any offers of credit.

These figures have possibly suggested that any real signs of a housing market recovery may well be some way off.

The figures have also shown another small rise in the number of mortgage approvals but as with the last couple of months, the number of aproovals is a long way off from those seen during the housing boom.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "The fundamental issue remains the withdrawal of many lenders from the mortgage market over the past year and the reluctance of new participants to play a meaningful role in delivering finance to potential homebuyers."