CML media note on today’s issue of news & views

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Tuesday, 23, Sep 2008 12:00

The last week has seen some momentous changes affecting the mortgage industry, both in the UK and abroad. The recommended acquisition of HBOS, the UK’s largest lender, by Lloyds TSB was followed by American proposals for intervention on a massive scale to help financial institutions and promote market stability.

So, what does it all mean for housing markets for the rest of this year and beyond? The reality is that, given all the market uncertainty, it is very difficult to make accurate forecasts. Some details of the US proposals are still not yet clear. So while we accept that our forecasts currently understate the likely magnitude of the house price correction in the UK this year, we believe it is futile to update them in current market conditions. We would agree, however, with the general industry consensus that any market recovery is unlikely before 2010. We also believe that targeted action will be needed in the UK following publication of the report emerging from the Crosby review later this month.

The current issue of CML news & views also reports on how first-time buyer attitudes have changed since the onset of the credit crunch. And it dispels the myth that borrowers’ responsibilities to pay their mortgage are in any way affected if their lender is taken over or goes into administration.

Visit our website to read the latest issue of CML news & views