The latest data confirms that potential homebuyers are still treating the current housing market with extreme caution resulting in fewer mortgages, fewer sales and lower prices.

Hometrack data for May shows prices down nationally by 0.5% on the month after a 0.6% fall in April. But the more worrying trend for sellers is the fall in new registrations with agents, down 6.7% on the month.

The lack of potential homebuyers also shows in the latest British Banking Association figures which puts the number of new mortgage approvals for April down almost 40% on a year ago.