Yesterday finance chief
But he added that it was likely to be a short-term dip.
'Whether as we get beyond the summer recess consumers return to the market is hard to call. But, whatever, it still looks likely to be a short-lived downturn.'
Tougher rules – including stricter affordability tests for borrowers – were introduced in April.
The new regime, dubbed the Mortgage Market Review – has been criticised by some for going over the top, with households asked intrusive questions about their finances and how they spend their money.
Rennison said this has restricted mortgage lending, as implementing the new rules has taken up time and energy.
But the building society, which said it had more than doubled its profits from
The comments come as figures published today showed house prices have been cut more sharply in the property 'summer sale'.
This marked the biggest drop in asking prices in August for more than decade. Average prices dropped
Sellers tend to drop their asking prices in the summer because potential buyers tend to be more thin on the ground in the holiday season.
Regulators also believe the housing market is set to slow, with the Bank of
In its August inflation report last week, the Bank said the monthly increase in property values will fall from its current level of 1pc to 0.5pc in the first three months of next year.
It cited a levelling out of demand and an increase in the supply of houses.
It lowered its forecast for the number of mortgage approvals for the final three months of the year to 75,000.
This is 10,000 less than it had predicted in May.
The cool-off would mean that house prices would increase by around 6pc across next year, compared with more than double digit annual growth for much of this year.
The boom has been fuelled by the strengthening economy and Government schemes such as Help to Buy.
But the inflation report said: 'There is more uncertainty about the path of the housing market than three months ago.'
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