The most recent figures from the Council of Mortgage Lenders (CML) show that £9.9 billion in mortgage lending was approved by banks and building societies in February, a 15 per cent fall on January's figures and the lowest level for eight years. February is traditionally the slowest month of the year.

CML blamed a shortage of retail deposits for the low level of new lending. CML director-general, Michael Coogan, said: "Retail savings are now the predominant source of funding for mortgages. But banks and building societies have seen savings ebb away to National Savings and Investments (Premium Bonds), which has a negative impact on their ability to lend".

These figures would appear to mean that the rise in buyer enquires reported by estate agents and housing websites over the past eight weeks has not yet translated into new house purchases despite lower prices and interest rates close to zero.

Meanwhile, according to the most recent figures from the Department for Communities and Local Government (DCLG) the cost of a detached house rose by 4.9 per cent between December 2008 and January 2009, pushing up average house prices by 0.2 per cent for the month but the national average house price fell by 11.5 per cent in the year to January 2009.

Estate agents said the increase in detached property prices was a result of short supply, and demand from buyers with access to ready cash or plenty of equity from the sale of a former home.