Data from the Bank of England shows that the “broadly stable” activity seen since 2016 continued into the final month of 2018, resulting in households borrowing £4.1bn against their properties.
This is up from November’s figure of £3.6bn and just above the six-month average of £3.9bn.
The data also shows that 63,793 house purchases were approved in December, worth a combined value of £11.9bn, down slightly from November’s 63,952 at £12bn.
Within the same time frame, 47,902 remortgages at a value of £8.5bn were approved, slight drops from 48,558 and £8.7bn, respectively.
In total, the value of loan approvals in December 2018 came to £21.1bn, down from the £21.3bn recorded in November, and down slightly from the previous six-month average of £21.7bn.
One77 Mortgages managing director Alasatair McKee comments: “While many have been preparing to place the last nail in the coffin of the UK property market ahead of any EU resolution that may occur, a monumental surge in lending suggests that there’s not only life in the old dog yet, but it could well make it to Crufts this year.
Of course, it is early days, but this huge uplift in buyer demand could be just the shot in the arm we’ve been looking for and shows signs of promise for the year ahead.”