The brakes were still on the property market in January, as three separate reports showed a further slowdown in mortgage lending at the start of the year.

The Council of Mortgage Lenders, releasing its figures today, said that lending had fallen by 16% to £17.9bn in January, compared with £21.3bn in December and 18% lower than the £21.8bn lent in January last year.

Most of the decrease in lending was for people buying property. Lending for house purchase fell to £7.1bn, down 29% on the £10bn lent in December, and 30% lower than the amount lent in January 2004.

Only 40% of the total amount lent by mortgage providers in January was for people buying property, and the number of loans for purchase fell from 85,000 in December to 63,000 in January.

Peter Williams, CML director general, said: "These figures show beyond doubt the recent slowdown in the housing market. But, as we have said before, this year is likely to be lumpy rather than smooth, and it is impossible to gauge the future direction of the market from one month's figures."

He added that consumer confidence surveys suggested people were feeling more upbeat about the property market in January, and that anecdotal evidence from estate agents also suggested a pick up in sales.

"Overall, the picture is consistent with the CML's expectations of a cooler, but still active, housing market. Lending this year will undoubtedly be less buoyant than in 2004, but the decline in lending levels in January reflects a strongly seasonal element and is unlikely to continue to be so marked as 2005 progresses."

The British Bankers Association (BBA) announced that lending had risen by £4.4bn last month, down from a growth of £5.1bn in December, and predicted that the cool off in what was a booming housing market would continue for some months.

"In the current state of housing market sentiment the relatively slower pattern of mortgage demand looks likely to continue on the early months of 2005," said BBA director of statistics David Dooks.

The Building Societies Association also reported a fall in lending from £3.5bn in January 2004 to £2.7bn last month.

Adrian Coles, director general of the BSA, said: "These figures are no surprise; we are now experiencing the widely predicted market slowdown, compared to a year ago.

"However, it is notable that over the last three months lending has been broadly stable - a good indication that fears of a sudden crash are overstated."