No house price forecast from CML

Posted: 22 Dec 2008 12:10:27 GMT

The Council of Mortgage Lenders (CML) has decided that it will not publish its annual house price forecast this year, following one of the worst 12 months in recent history.

The news comes as the number of mortgages available for those with a ten per cent deposit stands at just 130 as most lenders shy away from offering loans, and will not inspire confidence in potential buyers.

So far this year, analysts have widely predicted that house prices will not bounce back until they reach an average fall of 30 per cent.

This prediction leaves a great deal of space for further falls in house prices, as many commentators have stated that the average house price has dropped only 12 - 15 per cent in 2008.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "We forecast house prices to fall by a further 15 per cent in 2009 and then by a further five per cent in the first half of 2010 before stabilising."

Homeowners hoping to make a sale in the near future may do better by putting their property online, which can attract more buyers than if they work with a traditional estate agent.

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