The number of approvals of mortgages across the UK fell slightly in July, according to the British Bankers'' Association (BBA).

These latest figures from the BBA add weight to the argument of many observers that the UK housing market is steadily cooling down, largely as a result of the five interest rate rises introduced by the Bank of England over the past year.

However, while the number of mortgage approvals fell by 0.7 per cent from the total in July 2006 to 66,965, the value of those loans approved rose by 12 per cent, with net mortgage lending reaching £5.7 billion.

"We expect the stable trend in the banks'' lending to continue over the next couple of months," said David Dooks, BBA director of statistics.

According to the Council of Mortgage Lenders, growing house prices are behind the continued fall of first-time buyers in the UK, with the average prospective buyer now needing 3.37 times their annual income in order to get on to the property ladder.