CML issues warning on house repossessions for 2012
Filed under: News —
The Council of Mortgage Lenders (CML) has made some rather dour predictions when it comes to the level of house repossessions for 2012.
The body expects that repossessions will rise from 37,000 recorded cases this year to 45,000 in 2012, an increase of 22%.
That gain in repossession activity will be driven by growing levels of unemployment, and decreasing household income.
It will come as no great surprise that the Council has also cut its forecast in terms of property sales and mortgage lending levels next year.
The CML predicts that 825,000 homes will be sold in 2012, down from 850,000 this year.
Whereas mortgage lending for 2011 is set to hit an estimated £138 billion, the Council is now forecasting that this will decrease to £133 billion in 2012. While that doesn’t sound like much of a slump, it’s not so good when you consider that previously the CML had estimated a rise to £150 billion next year.
According to Bob Lender, “There just isn’t much good news for the housing market, with mortgages for first-time buyers continuing to be tricky to obtain regardless of the very low level interest rates have been held at.”
Story link: CML issues warning on house repossessions for 2012
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