Mortgage lending continued to tumble in February, falling by 60 per cent compared to the same month last year.

Figures from the Council of Mortgage Lending (CML) show that only £9.9 billion in gross mortgage lending was approved by banks and building societies in February, a 15 per cent fall on January's figures and the lowest level since February 2001.

The CML cautioned that February is typically the slowest month in the year for new mortgage approvals and said that the low monthly figures were in line with its predictions.

However, it blamed a shortage of retail deposits for the low level of new lending. Michael Coogan, CML director-general, 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, which has a negative impact on their ability to lend."

Experts warned that the latest figures suggest that the rise in buyer enquires reported by estate agents and housing websites has not translated into new house purchases.

Howard Archer, chief UK economist for IHS Global Insight, the consultancy, said: "The CML mortgage data indicate that there is still no concrete evidence of housing market activity picking up despite surveys showing that buyer enquiries have picked up in recent months.

"While buyer enquiries are being lifted by lower house prices and the Bank of England slashing interest rates, we suspect that this will not translate into markedly increasing house sales for some time to come."

The cost of an average detached house rose by 4.9 per cent between December 2008 and January 2009, pushing up average prices by 0.2 per cent for the month, according to figures from the Department for Communities and Local Government released earlier this week. 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.

Commentators expect house prices to fall by a further 10 per cent before the end of the year.