diff --git a/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/Binder.java b/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/Binder.java
index 555efafc20b..61c68169646 100644
--- a/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/Binder.java
+++ b/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/Binder.java
@@ -551,7 +551,7 @@ public class Binder {
 			this.configurationProperty = configurationProperty;
 		}
 
-		private void clearConfigurationProperty() {
+		void clearConfigurationProperty() {
 			this.configurationProperty = null;
 		}
 
diff --git a/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/ValueObjectBinder.java b/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/ValueObjectBinder.java
index 8b3277f0d9a..833afdfa1f8 100644
--- a/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/ValueObjectBinder.java
+++ b/spring-boot-project/spring-boot/src/main/java/org/springframework/boot/context/properties/bind/ValueObjectBinder.java
@@ -61,6 +61,7 @@ class ValueObjectBinder implements DataObjectBinder {
 			arg = (arg != null) ? arg : parameter.getDefaultValue(context.getConverter());
 			args.add(arg);
 		}
+		context.clearConfigurationProperty();
 		return bound ? valueObject.instantiate(args) : null;
 	}
 
diff --git a/spring-boot-project/spring-boot/src/test/java/org/springframework/boot/context/properties/bind/ValueObjectBinderTests.java b/spring-boot-project/spring-boot/src/test/java/org/springframework/boot/context/properties/bind/ValueObjectBinderTests.java
index 48aa5dfabe7..2eb46837a0b 100644
--- a/spring-boot-project/spring-boot/src/test/java/org/springframework/boot/context/properties/bind/ValueObjectBinderTests.java
+++ b/spring-boot-project/spring-boot/src/test/java/org/springframework/boot/context/properties/bind/ValueObjectBinderTests.java
@@ -21,6 +21,7 @@ import java.util.ArrayList;
 import java.util.List;
 import java.util.Objects;
 
+import com.atomikos.util.Assert;
 import org.junit.jupiter.api.Test;
 
 import org.springframework.boot.context.properties.source.ConfigurationPropertyName;
@@ -29,6 +30,7 @@ import org.springframework.boot.context.properties.source.MockConfigurationPrope
 import org.springframework.format.annotation.DateTimeFormat;
 
 import static org.assertj.core.api.Assertions.assertThat;
+import static org.assertj.core.api.Assertions.assertThatExceptionOfType;
 
 /**
  * Tests for {@link ValueObjectBinder}.
@@ -220,6 +222,20 @@ class ValueObjectBinderTests {
 		assertThat(bean.getDate().toString()).isEqualTo("2019-05-10");
 	}
 
+	@Test
+	void bindWhenAllPropertiesBoundShouldClearConfigurationProperty() { // gh-18704
+		MockConfigurationPropertySource source = new MockConfigurationPropertySource();
+		source.put("foo.bar", "hello");
+		this.sources.add(source);
+		Bindable<ValidatingConstructorBean> target = Bindable.of(ValidatingConstructorBean.class);
+		assertThatExceptionOfType(BindException.class).isThrownBy(() -> this.binder.bind("foo", target))
+				.satisfies(this::noConfigurationProperty);
+	}
+
+	private void noConfigurationProperty(BindException ex) {
+		assertThat(ex.getProperty()).isNull();
+	}
+
 	static class ExampleValueBean {
 
 		private final int intValue;
@@ -413,4 +429,26 @@ class ValueObjectBinderTests {
 
 	}
 
+	static class ValidatingConstructorBean {
+
+		private final String foo;
+
+		private final String bar;
+
+		ValidatingConstructorBean(String foo, String bar) {
+			Assert.notNull("Foo must not be null", foo);
+			this.foo = foo;
+			this.bar = bar;
+		}
+
+		String getFoo() {
+			return this.foo;
+		}
+
+		String getBar() {
+			return this.bar;
+		}
+
+	}
+
 }