October gross lending came in at £33.5 billion in October, while it was £33.2 billion in November 2006.
This is the first time that monthly lending levels have dropped below the same month in the previous year since July 2005, and clearly demonstrates the market slowdown has started.
CML director-general Michael Coogan commented: "As we had forecast, lending in November dipped below its 2006 equivalent for the first time this year and we expect this trend to continue into 2008. However, while lending will be subdued in coming months we see this as primarily a result of lack of available funding rather than lack of consumer demand.
"We welcome the recent initiative by the Bank of England with other central banks to inject liquidity. This support needs to continue, and be increased, in the coming months."
