Britain's property market showed further signs of cooling as U.K. mortgage approvals for May fell to an 11-month low, figures released on Monday show, alleviating fears the sector is in a bubble.
British lenders approved 61,707 mortgages last month compared to April's figure of 62,806, according to the Bank of England, hitting its lowest level since June 2013.
The drop was driven by stricter mortgage rules introduced in April to protect against risky lending and stop the housing market from overheating. It required lenders to carry out affordability checks before issuing a loan.
"Lenders are worried about the size of their loan book and quite rightly we've learnt lessons from the last recession and putting in slightly more stringent checks," Guy Grainger, U.K. CEO at Jones Lang LaSalle, told CNBC in a TV interview.
"It is stemming some of the heat because there are these checks in place and that's definitely a good thing."
At the same time, mortgage lending rose by £1.988 billion in May, the biggest increase since July 2008, fueled by a rise in house prices. In the three months to May, mortgage lending rose at an annualized rate of 1.7 percent, the quickest growth since September 2008.