The British Bankers' Association (BBA) have issued figures today that show that mortgage lending in May has slumped to the lowest level since 1997, as the total value of loans fell by £1.5BN compared to April.
Mortgage approvals fell from 34,752 in April to 27,968 last month.
The remortgaging business, where people have to refinance, is remaining firm.
The effect of the housing market of the mortgage drought is not entirely surprising, sellers now outnumber buyers by 15 to 1.
So, what happened to the government's much vaunted housing shortage?
People are now having to come to terms with living within their means, and that affects their living arrangements (eg stay at home with mum and dad, or live in less salubrious areas).