An assessment of the mortgage market in June shows that approval levels are becoming more subdued, one industry body has stated.

The British Bankers' Association, reviewing market behaviour for the last full month, has stated that the average loan stood at £159,600 - around 16 per cent higher than the same month last year.

However, those looking to purchase a new home may be interested to know that the number of mortgage approvals granted fell by eight per cent.

David Dooks, BBA director of statistics, said: "Although the trend in net mortgage lending is being maintained, approval numbers for house purchase are well down on this time last year, suggesting that market demand may be reacting to higher mortgage costs."

Responding to the figures, the Royal Institution of Chartered Surveyors stated that the "Cinderella culture" was starting to wear off with people taking a more realistic view of their economic circumstances, causing an easing back of consumer spending.