Gross lending fell by eight per cent from October to November, according to recent figures form the Council of Mortgage Lenders (CML).

Data from the organisation indicates that lending fell to an estimated £30.7 billion in November, down eight per cent from its figure of £33.2 billion in November 2006.

Director of the council Michael Coogan comments: "We expect this trend to continue into 2008. However, while lending will be subdued in coming months we see this as primarily a result of lack of available funding, rather than lack of consumer demand."

The CML notes that this is the first time that monthly lending levels have dropped below the same month in a previous year since July 2005 - demonstrating that the market slowdown has begun.

Commenting on the data, chief economist of the Royal Institution of Chartered Surveyors Simon Rubinsohn stated: "It is clear that the credit crunch is hurting the housing market. Lenders are becoming more selective in whom they are willing to advance funding to."

As such, he noted that some would-be buyers will struggle to obtain finance.