CML predicts gentle improvement in housing market

Date:Monday 19th April 2010
Author: Max Freedman

The housing market will improve in 2010 at a gentle pace, according to the Council of Mortgage Lenders (CML), but there are several issues that are blocking the industry from making a more pronounced recovery.

Paul Samter, economist at the organisation, highlighted how there are still funding problems that need to be resolved if the market is going to get stronger, with about £300 billion of official support programmes set to end in 2011.

In his opinion, the recovery of the housing market will have a significant effect on the performance of the wider economy.

But there is a "comfortably higher" number of mortgage deals taking place than a year ago and low interest rates combined with slowly-improving economic circumstances are good news for the sector.

Mr Samter commented: "Despite the increase in activity late last year and a subsequent fall early this year - due to the end of the stamp duty holiday - the underlying position looks to have barely changed."

The CML reported that the number of house purchase loans completed in February increased by 49 per cent year on year.