Mortgage approvals slump to nine-month low

Mortgage approvals declined in February for the third consecutive month, Bank of England figures reveal.

Bank data shows the number of loans approved for house purchases fell by around 1,000 to 47,094 during the month - marking the lowest total for nine months as the slowdown in the property market shows no signs of abating.

The slowdown since the start of the year has been attributed to the end of the temporary stamp duty holiday in December, with today's figures suggesting a stamp duty hangover is still impacting sentiment.

In his Budget last week, Chancellor Alastair Darling scrapped stamp duty for first-time buyers of houses worth £250,000 or less in an effort to kick-start the housing market.

Meanwhile, figures from the Building Societies Association (BSA) showed a net inflow in savings held at mutuals. According to the BSA, balances held in savings accounts increased by £807m in February, marking the first increase for a year.