The number of mortgage approvals in January declined by 17% compared to December, according to data released by the Bank of England.

The 48,198 mortgages approved in the first month of this year was the lowest number for eight months, but still 43% higher than a year ago earlier.

Experts have said the end of the stamp duty holiday was behind the drop. The stamp duty threshold dropped back to £125,000 on 1 January, prompting a rush on mortgage approvals and completed home sales in the final months of 2009.

"Activity was subdued and this has been felt by all lenders. Low activity in the month was expected following the surge of buyers aiming to beat the end of the stamp duty relief in December," Adrian Coles, director general of the Building Societies Association.