First-time buyers are having to stump up a higher percentage of the purchase price than at any time since 1980 in order to obtain a home loan, reflecting caution among banks about the state of the UK housing market, data from the Council of Mortgage Lenders shows.

The average mortgage advance in July was 85 per cent of the purchase price, the lowest percentage extended at any time since 1980. However, in 2004, banks displayed levels of caution close to those today at around 86 per cent of purchase price.