Figures from the British Bankers’ Association (BBA) show there is still not enough money coming through to meet demand for mortgages.

Brigid O’Leary, senior economist with the Royal Institute of Chartered Surveyors (RICS), said: “The data highlights the fact that the continued news of increasing buyer interest is not readily translating into higher levels of mortgage approvals.

“Lending for new house purchase was virtually unchanged in both value and volume terms between July and August.

“This is probably a sign that banks are still either not willing or not able to extend their mortgage lending facilities, but it could also be an indication that low levels of property for sale are constraining any increase in potential transactions and, therefore, mortgage approvals.

“The biggest obstacle seems to be the limited availability of mortgage finance, especially for first-time buyers without sizeable deposits, and there’s been little to suggest that this could improve considerably in the next few months.”