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Positive signs beginning to appear in the housing market…but still a long way to go

The Council of Mortgage Lenders (CML) has revised down its prediction of the number of homes that will be repossessed in 2009 from 75,000 to 65,000 in the latest update to its housing market forecasts. The trade body said the positive revisions were necessary as a result of the benefits existing borrowers had been gaining from lower interest rates, together with the significant levels of forbearance being shown by lenders and the Government's interventions to improve support for struggling homeowners.

The number of mortgages expected to be in arrears equivalent to 2.5% or more of the mortgage balance by the end of the year has also been reduced to 360,000, 15% fewer than had previously been forecast. However, with conditions in the housing and mortgage markets expected to remain challenging, forecasts for housing transactions and gross lending remained unchanged, at 700,000 transactions and £145 billion of gross lending. "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" said the CML.

 

 

 

Date: 20th October, 2009
Author: Liz Hopkin

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