The latest figures reveal that lending has slowed in the past month with September hitting £29.5 billion, down by 11 per cent on the all-time record reached in August of £33 billion.
CML Director, Michael Coogan, said: “Housing demand and mortgage approvals in May and June this year were particularly strong and this supported the record levels of lending during the summer months. The lower levels of lending in September must be seen against this backdrop.
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Both the Nationwide and Halifax have said that prices rose by about 1 per cent during the month of September.
Overall in 2006, UK house prices have increased at a far faster rate than most analysts’ forecasts.
Coogan said: House price growth and mortgage approvals continue to remain strong, so we should expect to see continued levels of robust lending over the coming months.
But with financial markets now expecting a further interest rate rise, we anticipate a slow down in house sales and mortgage approvals as we move into 2007.
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