CML: November lending hits ?16.9bn

The figure is 9% lower than in October, when total lending stood at £18.6bn.

Mohammad Jamei, CML economist, said: "Current activity in the housing market has eased with transactions back down to levels seen almost a year ago.

"The reform in Stamp Duty is likely to provide a modest short-term boost in activity over the next few months, but its impact will fade away in the medium term."

Henry Woodcock, principal mortgage consultant, IRESS, said: “This dip is not at all surprising.

“The traditional pre-Christmas lull began to take its toll last month, as lenders and buyers alike batten down the hatches until the New Year.

“While the bottle-neck from the MMR is no longer having the impact it once was, tighter lending conditions on top of the seasonal slowdown have certainly pulled the brakes.

He added: “However, mortgage rates reaching their lowest point since 2007 will act as a boost to reignite the market, and key to this is Osborne’s Stamp Duty reforms, which will stimulate activity and give a vital ‘leg-up’, particularly to first-time buyers who so want to get a start on the housing ladder.

“Whilst it is too early to know the effects in full, the incentives will play a vital role in the market in 2015.”

Jonathan Harris, director of mortgage broker Anderson Harris, said: “The steady year-on-year picture is rather different from the 40% year-on-year jump in January but makes for a more sustainable and healthy market.”

He added: “All we need now is for lenders to come up with innovative products that will solve some of the issues created by MMR.

“In particular, something directed at older borrowers who are struggling to get a mortgage, remortgage or even guarantee a child's mortgage because of their age.”