The number of mortgages taken out by British home-buyers reached a record low in March, according to the British Bankers’ Association (BBA), amid continuing concern about a slowdown in the housing market and a lack of supply of residential loans.

The BBA said that mortgage approvals for house purchase slumped nearly 50% compared to a year ago. Around 35,417 new mortgages were approved in March, with a value of £5.6bn, both down on the normal level of business and the 43,147 mortgages worth £6.8bn approved in February.

Recently, the Council of Mortgage Lenders (CML) reported mortgage lending in March was almost a fifth down on the same month last year. Overall, taking into account re-mortgaging and equity withdrawal schemes, the BBA said that the value of property-backed lending was down by 15% - the lowest level since 2000.