But the rate of interest charged on loans is not the key factor slowing the property market.  An analysis by Moneyextra of transactions on its web site suggests that it's the high loan-to-value requirements being introduced by mortgage lenders that is really having an impact.

According to Moneyextra, the average loan-to-value being considered by first time buyers last month was just under 82 per cent.  In other words, they were expecting to provide a deposit of around 18 of the property value.  But lenders were restricting borrowers to loans of no more than 75 per cent of the value of the property, requiring buyers to come up with a quarter of the purchase price in cash.

With an average property value for first time buyers of £170,236, that would suggest that a first time borrower would have to find £42,559 to get a mortgage.