The Building Societies Association reported gross mortgage advances were £4.94 billion compared to £3.8 billion in September. Brian Morris, BSA's head of savings, said the market "continues to be relatively strong" but warned, "the month-on-month decline in loans approved but not yet made may be an early indication that the heat is starting to be taken out of the market".

Mortgage lending continued to grow solidly in October, up £5.5 billion, according to the British Bankers' Association. The growth was higher than September's £5.4 billion rise but behind the £5.6 billion average for the previous six months.

Property website Rightmove's latest data also showed the property market remained strong with the average asking price for a house in England and Wales up 12 per cent in the past year to £222,333. The biggest gains were once again in London where the average asking price was up more than 18 per cent to £344,949 in the past year, which was nearly 3 per cent on the previous month as well.

However, there were signs that interest-rate rises in August and November may be taking their toll of the market. Another website, propertyfinder.com, said that people’s confidence in the market had slipped. Its survey showed that people expected house prices to rise by 5.2 per cent over the coming 12 months, down from 5.5 per cent in October.

The latest figures from the Council of Mortgage Lenders revealed gross lending hit £30.3 billion in October, up by 4 per cent on the September but down by 8 per cent from the £33 billion in achieved in August. Lending was up 12 per cent in comparison to October last year.

Michael Coogan, CML director general, said the rebound was not a surprise given there is typically a pick-up in house hunting at the end of the summer holidays. However, he too cautioned a slowdown could be on its way.

"For yet another month the housing market is proving itself to be in robust shape," Mr Coogan said. "But with interest rates rising for the second time in three months, we anticipate a modest slow down in house sales and mortgage approvals as 2007 progresses."

The strong housing data comes as estate agent Foxtons' seeks to capitalise on the property market's strength with plans to list its shares on the London Stock Exchange. The capital raising, which could value the agency at up to £400 million, will be used to fund its expansion in the US.

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