Things looking brighter for next year, CML forecasts

Things are beginning to look up, the Council of Mortgage Lenders is predicting.

The CML says there are grounds for optimism that the market recovery – which it says began this year – should continue next year, reinforced in part by Funding for Lending scheme effects.
 
This time last year, the CML had forecast that there would be 825,000 property transactions, £133bn of gross lending and £8bn of net lending.

In fact, activity was stronger than expected says the trade body, and the CML now expects to end 2012 at 930,000 transactions, £144bn of gross lending and £9bn of net lending.

Its estimates look to be ahead of Land Registry data on transactions. Latest Land Registry figures shows that housing transactions between January and August inclusive this year totalled 423,735.

The CML is forecasting 950,000 property transactions next year, £156bn of gross lending and £12bn of net lending.

It thinks these levels will fall back a little in 2014 after the Funding for Lending drawdown window ends, to 930,000, £150bn and £11bn respectively.

The CML is also forecasting that this year there will have been fewer repossessions than originally forecast. It had predicted 45,000 but now thinks there will be 35,000. It is predicting the same number for next year, with a rise to 37,000 in 2014.