The UK housing market experienced an unusually high amount of activity during the three months to the New Year and the data from December confirms this. The concluding month to 2015 saw a decrease in the amount of mortgage lending than in November, but was an increase of more than 22% compared with the same month in 2014.

The total for the month in terms of lending by banks and building societies, according to the Council of Mortgage Lending, was almost £20bn. This is compared with slightly more than £16bn posted in the same month of the year prior.

The housing market started the year at a slow pace, but quickly exploded by the time the summer months took hold. One area in particular has been in high gear for several months consecutively. That area is remortgage.

Remortgage activity has been skyrocketing since the fall of 2015 and continues to be strong. Many households are taking advantage of the number of remortgage deals which are still available. Not only are there a number of attractive deals, but deals with exceptionally low rates attached to them.

Mohammad Jamei with the CML commented on the latest data to hit the headlines, saying: “The low inflation environment, along with real wage growth, an improving labour market and competitive mortgage deals all helped to underpin demand.”

Jamei added: “Having said this, the upside potential looks limited over the near-term, as the supply of existing and new properties on the market remains weak, and affordability pressures weigh on activity. There is an added element of uncertainty as we wait to see the impact of tax changes on the buy-to-let sector.”