How mortgage figures mean dark times for the economy

Is the UK in for a short, sharp shock or a long, drawn-out recession? The state of the housing market gives us some pointers – and it's not looking good for Britain's economy.

It never rains, it pours. Hot on the heels of the Bradford and Bingley saga, there is the news that mortgage lending has hit a record low.

Just 58,000 loans were made in April. That compares with 64,000 in March and 113,000 in April 2007. House prices will keep falling. But they'll take their time the market is drying up, with many would-be sellers pulling out of deals rather than dropping their prices.

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