House purchase approvals are being affected by political uncertainty surrounding the EU referendum, according to e.surv forecasts.

The surveyor, based on its own activity last month, forecasts 65,113 house purchase approvals during May, down 1.7% from 66,250 the previous month. If accurate, this marks a 12-month low in lending levels, and is the lowest monthly figure for home purchase loans since the 64,626 granted in May 2015.

It follows monthly declines of 5.8% in April and 3% in March, meaning volumes have fallen 10.5% over the past three months.

Buyers in the midlands seem to be having the toughest time, where the proportion of small deposit borrowing fell from 24% in May 2015 to 21% last month.

Only London and the south-east saw proportional increases in small-deposit lending over the same period, rising to 10% and 15% respectively. Meanwhile, the proportion of small-deposit borrowing in Northern Ireland stayed at 30%, continuing as the most first-time buyer friendly region in the UK.

Richard Sexton, director of e.surv chartered surveyors, said the EU referendum is causing some nervousness within financial circles and bringing new unknowns with it.

He said: “This political milestone could impact the UK’s economic outlook, and slowing growth could pose problems of its own for both lenders and borrowers. Juggling these challenges will be key to maintaining the current health of the mortgage market and lenders should brace themselves for possible surprises.

“Faced with this uncertainty, it’s perhaps no surprise that home lending levels are falling slightly.

“The result is a slight tail-off mid-year, as home buyers pause for thought and lenders are gifted more time to investigate the potential of offering additional mortgage choices. A lull in buy-to-let lending following April’s Stamp Duty changes has also added to this calming in the market.”