The glum outlook for house prices was underscored yesterday by new data showing that both the number and value of loans for home purchases fell to their lowest level in years, writes Norma Cohen .

The Council of Mortgage Lenders said there were 42,200 loans for house purchases in August, the lowest since the group, began keeping monthly records in January 2002. The number of first-time buyers fell to a new low in September of 15,600.