Property lawyers are likely to be unhappy with the latest statement from the Bank of England which looks as though it will lead to a further decrease in the availability of mortgage funds, especially for first-time buyers and those needing interest-only loans.

Because of the credit crunch, the level of residential conveyancing has fallen dramatically in the last three years, resulting in a major decrease in work for many solicitors.

Although properties in the most expensive parts of central London, Knightsbridge and Chelsea, among others, are still selling well, and popular towns around the UK, such as Brighton, are maintaining demand, sellers are not putting their homes on the market in many areas of the UK because of the unofficial freeze on lending.

In its latest Credit Conditions Survey, the Bank warned that lenders had tightened credit scoring criteria over the past six months and expects to tighten them even further before the end of the year.

The Financial Services Authority (FSA) has also said mortgagors should adopt a more cautious approach to lending, although the Council for Mortgage Lenders has said measures to remove interest-only mortgages from the market are unnecessary.

Property lawyers also fear those looking to re-mortgage will be unable to do so, further depressing the money supply and sales of homes.