The figures also showed that the value of loans in Q3 2016 fell 17.4% compared with Q2 2016.

However, the total value of loans written by ASTL members for the year ending 30th September 2016 is up 15% compared with the year ending September 2015.

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Benson Hersch, chief executive of the ASTL, said: “This was the first full quarter after the referendum. 

“Brexit blues, increased stamp duties and impending tax changes all seem to have had an effect.   

“My doubts regarding the record level of applications in the June quarter being reflected in completions in the September quarter proved correct and I predict the same for the forthcoming quarter.

“Bridging figures have been on something of a roller coaster ride over the past year, having alternatively risen and then dropped. 

“However, the size of the total loan book is still well up on the previous year.   

“Anecdotal feedback from members in respect of Q4 remains positive, but while many are positive about their firm’s performance, the market is definitely … showing signs of becoming more difficult.  

“I therefore think that we will end the year well up on last year’s total of £2.4bn loans written, but we are unlikely to make the £3bn that many were predicting last year.”