The mortgage market is slowing down, according to building society figures.

The Building Societies Association said gross advances amounted to £2,682 million in January 2005, decreasing from £3,464 million in January 2004. Net advances were £744 million in January 2005, down from £1,298 million in January 2004. While approvals (loans agreed, but not yet made) decreased to £2,037 million in January 2005, from £2,612 million in January 2004.

A spokesperson for the Building Societies Association, said: “These figures are no surprise; we are now experiencing the widely predicted market slowdown, compared to a year ago. However it is notable that over the last three months lending has been broadly stable – a good indication that fears of a sudden crash are overstated.”