UK housing market outlook 'uncertain'

Posted: 16 Dec 2011 14:54:25 GMT

Poor short-term economic prospects are making the mortgage market more challenging.

The UK housing and mortgage markets are facing uncertain outlooks, it has been suggested.

According to the Council of Mortgage Lenders (CML), challenging short-term economic prospects are having a significant bearing on the property field.

The organisation noted wholesale funding developments have a considerable impact on the future availability and pricing of residential mortgages.

As such, the way in which the euro zone is able to deal with the current debt crisis will have a significant effect on the housing sector in the UK.

The CML added its central view is that mortgage activity and housing transactions will remain broadly flat across 2012 - which will carry on the trend of the last few years - while consumer confidence remains at a markedly low level.

Earlier in the week, chief economist at the CML Bob Pannell noted the general picture for the property field is unlikely to alter significantly until inflationary pressures ease and real incomes begin to stabilise.
 

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