Planning applications for office to residential conversions have fallen by a fifth in the past year, according to a new report.

A lack of bank funding is restricting the number of projects, it was claimed, with the number of applications in England falling from 999 in the last quarter of 2014 to 793 in the same period last year. Liam Brooke, of funding firm Saving Stream, which conducted the research, said: “Given how substantial the housing shortfall is in the UK, it’s frustrating for everyone that a hugely successful method of bringing new homes to the market is being hamstrung by a lack of funding.

“The problem is particularly bad in densely populated areas or areas where the housing shortage has had a particularly bad effect, such as the South of England. It makes little sense that there is a huge amount of space occupied by empty commercial buildings which could easily be turned into homes – if only the funding was there.”

Thirteen per cent of 40-something Britons have managed to pay off their mortgages, while 52 per cent are still doing so, a report has found.

The research among people aged between 40 and 49 found 29 per cent feel forced to stay in a job they are not happy with in order to keep their finances on track.

Meanwhile, 42 per cent regret not putting more money away, 22 per cent thought they would have been in a better-paid job by now and 16 per cent wish they had better qualifications, according to the study by Nationwide Savings.

The survey delved into the concerns of the age group often described as the “squeezed middle”, with 43 per cent fearing their pension pot will not be big enough, 30 per cent worrying about supporting their children and 21 per cent concerned about caring for parents or grandparents.

Men who took part in the survey earn £28,460 on average, while the women surveyed earn £21,629. The average amount people in their 40s have in savings is £8,665 – and despite many being well into their careers they also still owe £681 on average to the so-called bank of mum and dad.

The average credit card debt held by this age group is £1,626.