The amount of new mortgage approvals fell 23% in June as the housing market slowdown continued, figures from the British Banking Association (BBA) revealed.

The BBA figures showed just 21,118 new loans were approved in June, some 67% lower than 12 months previous.

"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 1990s," said the BBA's director of statistics David Dooks.

Approximately two-thirds of banks belong to the BBA but the survey is seen as widely indicative of the mortgage market in general.

The Bank of England has resisted pressure to cut interest rates in the past two months, fearing the effect of rising inflation.