There were 59,426 loan approvals for house purchase in October, compared to the average of 63,727 over the previous six months, the Bank of England has reported.

The monthly figure has been steadily dropping – from 65,991 in July to 64,072 in August and 61,426 in September.

In October, new regulation was introduced in the form of loan-to-income caps.

Richard Sexton, director of e.surv chartered surveyors, said this had “taken some of the wind out of first-time buyers’ sails” and that increasingly rigorous testing was deterring mortgage applicants.