Better property market forecast offered by CML

Posted: 23 Jun 2009 12:17:57 GMT

The Council of Mortgage Lenders (CML) has provided a more confident analysis of the property market than it did earlier in 2009.

A statement released by the body this week included the prediction that there will be fewer homes repossessed this year - down from an earlier forecast of 75,000 to 65,000.

Various factors have been cited for this change in hypothesis, including low interest rates and the high number of government schemes implemented in recent months.

Indeed, the Bank of England's monetary policy committee brought the cost of borrowing down to 0.5 per cent in March and is widely expected to keep it at this level for the remainder of the year.

The CML said: "The raft of measures taken by the authorities have stabilised the economy and will sow the seeds for a recovery over time, including in the housing market."

Predictions for housing transactions and gross lending have not changed since earlier in the year as the CML still thinks there will be 700,000 transactions and £145 billion of gross lending in 2009.


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