By Marcus Leach
Data released today (Tuesday) by the Bank of England (BoE) shows that the amount of non-mortgage borrowing held by consumers fell in December by the largest amount on record, £377 million.
The Bank said that the dramatic drop was due to a fall in borrowing on overdrafts, bank loans and hire-purchase agreements. However, the Bank went on to say that the amount outstanding on credit cards was unchanged in December.
Other official Bank data suggest that house sales in the UK may show a small rise in the next few months.
Total lending to individuals rose by £0.4 billion in December, less than the previous six-month average of £0.9 billion. The twelve-month growth rate was unchanged at 0.9%.
Within total lending, lending secured on dwellings rose by £0.7 billion, slightly higher than the previous six-month average of £0.6 billion. The three-month annualised growth rate increased by 0.2 percentage points to 0.9%, whilst the twelve-month growth rate also increased slightly to 0.8%.
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