Gross mortgage lending hit an all time record of £33.1bn in November, according to the latest figures from the Council of Mortgage Lenders.
Lending in November was 9% higher than the October figure of £30.5bn and 19% higher than the £27.7bn of lending in November last year.
It was also 0.2% higher than the previous record set in August of £33bn.
The CML says the strength of lending has been fuelled by the number of households growing more quickly than the supply of available housing, which has pushed up annual house price growth to nearly 10% in the final quarter of the year, compared to 3%-5% at the beginning of the year.
It predicts mortgage lending to remain strong over the winter months and reach a total of £360bn in 2007.
Other figures published by the Building Societies Association (BSA) show building society gross advances were £4.6bn in November, compared to £4bn in November 2005.
Net advances were £1.2bn compared with £960m the previous year, while approvals were £4.4bn, up from £4bn in November 2005.
Adrian Coles, director general of the BSA, says: "In November approvals, which are loans agreed but not yet made, were up 16.5% seasonally adjusted. Net loans were the highest November figures for three years and approvals are the highest November figures on record.
"This suggests that the rate rise in August has had little effect on the demand for mortgages. It remains to be seen what impact November's rate rise will have but the approvals figures suggest that the housing market will continue to perform strongly into Spring 2007.”
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