The Government's Funding for Lending Scheme struggled to make an impact on the mortgage market last month, as the number of approved home loans fell to 47,603.
September's figure reflected a 7% annual decrease; the third worst result for September since 1993.
According to e.surv, less than 5,000 home loans were issued to borrowers with deposits of 15% or less, suggesting the battle faced by first-time buyers trying to get onto the property ladder is far from over.
Despite the disappointing results for last month, Richard Sexton, business developer at e.surv, believes the next quarter will bring some relief for buyers.
"September isn't just a one off," he said. "The mortgage market has been struggling since early June, and is considerably weaker than it was this time last year.
"Analysts have been quick to criticise the Funding for Lending Scheme after an inauspicious start in August, but it will prove to be a slow-burn.
"FLS will begin to translate into higher mortgage lending in the fourth quarter, which will help more first time buyers get a foot on the ladder," he predicted.
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