  We present the results of a complete spectral survey of the X-ray point
sources detected in five XMM-Newton observations along the major axis of M31
but avoiding the central bulge, aimed at establishing the population
characteristics of X-ray sources in this galaxy. We obtained background
subtracted spectra and lightcurves for each of the 335 X-ray point sources
detected across the five observations from 2002. We also correlate our source
list with those of earlier X-ray surveys and radio, optical and infra-red
catalogues. Sources with more than 50 source counts are individually spectrally
fit in order to create the most accurate luminosity functions of M31 to date.
Based on the spectral fitting of these sources with a power law model, we
observe a broad range of best fit photon index. From this distribution of best
fit index, we identify 16 strong high mass X-ray binary system candidates in
M31. We show the first cumulative luminosity functions created using the best
fit spectral model to each source with more than 50 source counts in the disc
of M31. The cumulative luminosity functions show a prominent, statistically
significant flattening in the X-ray luminosity LX interval 37.0 \lesssim log LX
erg s-1 \lesssim 37.5. Such a feature may also be present in the X-ray
populations of several other galaxies, but at a much lower statistical
significance. We investigate the number of AGN present in our source list and
find that above LX ~1.4x1036 erg s-1 the observed population is statistically
dominated by the point source population of M31.
