The British Bankers' Association (BBA) report that mortgage approvals dropped to a new low in June, falling 66.4% compared with the same month last year.
David Dooks, director of statistics at the BBA, is quoted in The Times:
"Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990's."
The downturn in the property market is now impacting the rest of the economy that relies on property transactions to provide an engine of growth eg; DIY, furnishings, etc.
To add to the property market's woes, it is reported that the Bank of England is divided as to whether it should raise interest rates to 5.25% in August.
I don't think the BoE quite gets just how serious the economic decline might be, if not addressed, ie they are as ever behind the cuvre on this issue.