Conflicting information about the strength of the housing market was reported today when lenders announced the number of new loans fell 8% in August compared to July but the government's house price index indicated prices had risen month on month.

The Council for Mortgage Lenders (CML) said loans to home movers dropped 10% to 33,200 and their average deposit grew from 33% in July to 34% in August, meaning they were borrowing at the lowest loan-to value ratios for six years. The proportion of income spent on interest payments had also dropped marginally (0.1%) month on month to 9.5%, and by 1.9% from August 2009.