Wed 21 May 2008
Worse conditions yet to come, says CML
UK housing market conditions are set to “get worse before they get better”, according to revised figures released by the Council of Mortgage Lenders (CML).The CML is predicting that house prices will fall by 7% in 2008, in contrast to its previous 1% rise prediction, while mortgage lending itself will fall by 21% this year. Gross mortgage lending had been expected to total £340 billion, but is now set to reach £285 billion this year. House sale numbers will fall from one million to 770,000 throughout 2008.
“Over the next few months, lending volumes will get worse before they get better,” said Michael Coogan (pictured), director general at the CML. “The market is still very uncertain, but lenders are working hard to ensure that borrowers coming off fixed rates remain on track, that arrears and repossessions are minimised, and that pricing is as attractive as they can make it in a market where they must manage the demand for lending with caution.”
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