The Bank of England has warned the credit squeeze is set to worsen.
Its quarterly credit survey has revealed that lenders are increasingly nervous over the economic outlook and are expected to further tighten lending rules.
Borrowers looking for deals on the high street are finding it increasingly hard, and commercial property owners are facing the end of business rate relief.
"Unsurprisingly, lenders expect to reduce mortgage credit availability further over the next three months," Vicky Redwood, an economist at Capital Economics told the Guardian.
The conditions could force the Bank of England’s monetary policy committee to cut interest rates next week.
Despite this, the treasury is set to receive £1.3 billion if an estimated seven per cent of English and Welsh commercial property remains vacant, the Scotsman reported.
Writing in the publication, George Kereven noted: "Only the Treasury could imagine that most property owners deliberately sit around with empty shops and offices."