Mortgage approval falls 35%

The number of mortgages approved by banks fell again last month amid continuing concern about the property market, according to new data yesterday.

But buy-to-let mortgages specialist Paragon yesterday insisted the long-term prospects for the sector "remain attractive".

Figures released by the British Bankers' Association showed that 59,011 home loans were approved in October - down 35% on the same period last year.

Jonathan Perry, chairman of Paragon, said it was too early to say whether slowing housing market activity would lead to a soft or hard landing for prices, but added: "This uncertainty is weighing down sentiment for housing."

Announcing a 37% rise in pre-tax profits to £71m for the year to September 30, Paragon said it was expecting this uncertainty to trigger an increase in rental demand and rising rents, which was good news for its landlord borrowers.