Estate agents noted a continued cooling of the housing market in October, according to the results of an industry survey.

The National Association of Estate Agents (NAEA) said that the number of properties agents had on their books had dropped over the month, with many also reporting a downturn in agreed sales they had managed to reach.

There was also growing evidence that buyers have become increasingly cautious in the wake of the credit crunch, with the number of people registered with each agent falling from an average of 326 in September to 282 in October.

Stewart Lilly, the president of NAEA, said that while a "seasonal slowdown" is normal, the planned withdrawal of first-day marketing regulations in January "is by far the biggest threat to stability" for the future.

Earlier this week, the Association of Home Information Pack Providers said it would not object to the government extending first-day marketing into 2008.

Mr Lilly added that reports that Bank of England is considering rate cuts are encouraging, commenting: "All consumers need a period of stability in order to build up their confidence."