The number of mortgages approved in the UK has risen for the first time since May 2004, according to lending figures from the Bank of England.

New homeloans in December rose to 83,000, slightly higher than November’s nine-year low of 77,000. Actual mortgage lending rose by £7.1bn in December, up from a £6.4bn rise in November.

“This looks like the anticipated soft landing and not a crash,” said City analyst Colin Perry. “Although these figures contradict those published by the British Bankers’ Association, which said approvals were at a five-year low, I reckon activity will strengthen in the coming months.”