Harsher lending criteria have been adopted over the last two to three years, since regulators decided that before the financial crisis too many borrowers had over-stretched themselves – to such an extent that they could not continue to live in their homes once the recession struck.

Lenders are said to be ‘itching’ to lend, but the regulations are preventing them from doing so.

‘We have gone in the opposite direction since the recession – it was too relaxed, but now the regulation is too tight,’ warned Stuart Gregory, managing director of mortgage broker Lentune.

He explained: ‘There has been a certain amount of borrower apathy. Unless people wanted to move they have not experienced the new process. It is like looking down the barrel of a gun.

‘A lot of borrowers are holding back in light of the Bank of England’s twist and turns.

‘Borrowers may not also know that there are still differences in lenders’ criteria. For example, NatWest does not take into account childcare costs on a mortgage application, but most other lenders do.’

It comes as Knight Frank releases research showing the number of people planning to buy a home within the next year is at its lowest level since records began more than 18 months.

Gráinne Gilmore, head of UK residential research at Knight Frank, said: ‘This may not only be reflecting affordability concerns, but also the availability of stock on the market, as houses listed with estate agencies across the country remains close to record lows.’

Homeowners face tough affordability rules

Jonathan Harris, director of mortgage broker Anderson Harris, said: ‘Despite lenders offering rock-bottom mortgage rates, the number of people actually moving or planning to do so is nowhere near as high as one might expect.

‘The main issue is affordability, with the rules under the Mortgage Market Review strangling the mortgage market and making life much tougher for borrowers. The professional classes who have to pay school fees are finding that affordability models are affecting their ability to borrow, while older borrowers and the self-employed are also struggling to meet lenders’ tighter criteria. Would-be fIrst-time buyers are constrained less by the new rules and more by the deposit they are required to find.’

Lawrence Hall, a spokesman at property website Zoopla, suggested homeowners may be thinking that ultra-cheap mortgage deals are being taken off the market by lenders in preparation for a possible future increase in the Bank of England bank rate, which has been at a historic low of 0.5 per cent for more than six years.

Despite this, Zoopla released statistics today that suggested homeowners still believe house prices are on the cards.

It found that the east of England is the region of Britain where homeowners are most likely to predict price increases in the coming six months, with 97 per cent expecting values in their area to increase.

Homeowners in London and the South East are nearly as confident, with 96 per cent expecting prices to edge upwards.

Those in Scotland were found to be the least confident about property prices rising, although the vast majority (82 per cent) still expect to see prices increase.

Those living in Wales and the north east of England were also among the least confident, with 86 per cent expecting prices to move upwards.

Hall added: ‘The only slight chink in the armour is the fact that a sizeable number of people still feel securing a mortgage is becoming more difficult.’

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