Mortgage approvals have fallen to their lowest level for nearly five years but economists said the overall picture pointed to a levelling out rather than a crash in the property market.

They said the data suggested the market was stabilising after an adjustment during the summer.

The Bank of England said the number of loans approved for house purchase last month was 83,000, compared with the average of 94,000 in the three months to September.

Analysts said the figure was 35 per cent lower than last December's peak and back to the level of January 2000.

Total lending to individuals grew by £9.1bn, or 0.9 per cent, last month, £0.1bn weaker than the increase in September.

Secured lending grew by £7.5bn, or 0.9 per cent, in line with the increase in September. Gross advances were £0.8bn weaker at £23.1bn.

The value of all loans approved was £21.1bn, £0.6bn weaker than in September and £1.9bn weaker than the average in the three months to September.

Consumer credit growth was also weaker last month, growing by £1.5bn, or 0.9 per cent, £0.1bn weaker than the increase in September, the Bank of England said.

Today, the Nationwide Building Society will publish its House Price Forecast for next year.