Slowdown to continue as lending volumes go down

Lending volumes next year will return to normalised levels of 2002, the Council of Mortgage Lenders ...

Lending volumes next year will return to normalised levels of 2002, the Council of Mortgage Lenders (CML) has predicted. The CML forecasts 4% growth in house prices in 2005, with gross lending of £271bn compared with £293bn in 2004. While it expects a slowdown in the housing market over the next 12 months, the council believes this will be mostly because of a lower number of transactions rather than any widespread price reductions. Transactions are likely to total around 1.23 million next year, compared with an estimated 1.64 million this year. Looking beyond 2005, the CML expects a co...