CML says housing market is strong

Posted: 26 Oct 2007 11:47:15 GMT

The Council of Mortgage Lenders (CML) says that the UK housing market will not be affected by a reduction in the number of available mortgage products.

The Council of Mortgage Lenders (CML) says that the UK housing market will not be affected by a reduction in the number of available mortgage products.

Following the global credit crisis, Moneyfacts reported a 40 per cent decline in mortgages within the last three months.

This led to fears that the housing market would collapse but the CML says categorically that this is not the case and pointed out other major factors which will help to keep the market strong.

"I don't think the availability of mortgages is going to be affected to such an extent that it will affect the housing market, I think the biggest impact will be on the sub-prime sector, which would only have a modest effect on the housing market" said Bernard Clarke from the CML.

"The housing market continues to be underpinned by consumer demand for owner occupation, strong aspirations for owner occupation and there’s a shortage of supply.

"Those fundamentals will continue to underpin the market to a much greater extent than any shortage of mortgage products to customers," he added.

Mr Clarke went on to say that he was sceptical about the idea of there being a lack of confidence in the housing market overall.

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