Commenting on reports that mortgage approvals have sunk to a new low, Liberal Democrat Shadow Chancellor, Vince Cable said:

"The housing market has now all but ground to a halt.

"With millions of families struggling to make ends meet in the face of massive debts and spiralling food and fuel prices, the only people selling their houses are those who have no choice.

"Considering house prices have been seriously overvalued for so long, it is highly likely the slump will continue for the foreseeable future.

"With more and more people slipping into negative equity and unable to meet their mortgage repayments, the Government must act to ensure we do not see the mass repossessions which occurred during the last Tory recession."