The housing market may be "sitting on a plateau" after lenders reported a slight fall in the amount handed out to borrowers last month.

The Council of Mortgage Lenders (CML) said September's mortgage lending total was £17.8 billion, a 1% fall on the previous month but still 10% higher than the same month a year earlier.

CML chief economist Bob Pannell said the figures and other recent industry data pointed to a gentle easing in market conditions.

He said: "There is growing evidence that mortgage lending activity, and the housing market, are sitting on a plateau."

Figures from the Halifax earlier this month showed that the pace of house price increases is slowing, with values up by 0.6% month-on-month in September.

And property website Zoopla found that home owner confidence in the growth of UK house prices has fallen to its lowest level in 15 months.

However, Legal & General Mortgage Club director Jeremy Duncombe said there were signs that lenders are looking to pick up lending volumes.

Barclays is offering what it said are some of its lowest ever rates, including a three-year fixed rate at 2.29%, while HSBC has launched a 0.99% deal for borrowers with a 40% deposit.

Mr Duncombe said: "These deals won't be around forever though. With an inevitable interest rate rise on the horizon borrowers may want to take advantage of favourable market conditions and secure a better deal before rates creep upwards."

The CML's membership of banks, building societies and other lenders undertake around 95% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth more than £1.2 trillion.

Housing minister Brandon Lewis said: "Today's figures from the CML show how our efforts to support aspiring homeowners are working, with mortgage lending 10% higher than September last year.

"Schemes like Help to Buy are enabling people to buy their first home with a fraction of the deposit they would normally require, while our efforts to cut the deficit have helped keep interest rates at a record low and mortgages more affordable."