The figure is also around 40 per cent higher than the low of 76,000 that approvals dropped to in November last year.
But the market remained subdued during September, with Nationwide Building Society reporting that house prices fell by 0.2 per cent during the month.
At the same time the rate of annual house price inflation continued to fall to just 1.8 per cent- its lowest level since since May 1996.
But Nationwide, which expects prices to increase by between 0 per cent and 2 during 2005, said the market remained fairly robust.
It said that as house price growth had softened, buyers had shown renewed interest in the market, while estate agents were continuing to report rises in the number of new inquiries and agreed sales.
The Bank of England also reported a rise in new mortgage lending during August, with net advances, which strip out redemptions and repayments, rising by £7.59 billion, slightly above the average for the previous six months.