Council of Mortgage Lenders: predictions ‘futile’

29 September 2008

The latest fortnightly review from the Council of Mortgage Lenders (CML) has said that updating their house price predictions now is ‘futile’.

The CML stated that their prediction of a 7% house price drop this year has become outdated due to unexpected events in the mortgage market and the wider economy.

Both the Halifax and Nationwide Building Societies say house prices have fallen around 11% in the last year. The Council of Mortgage Lenders say that the housing market slump is unlikely to end before 2010.

A spokesperson for Think Money said: “The housing market is very volatile at the moment and the Council of Mortgage Lenders are being open about that.

“This may be a concern to homeowners who are looking to sell, because the value of their home may be significantly less than when they bought it. In most cases, it makes sense for homeowners to hold out and wait for the market to recover before they move, unless they have no choice.

“On the other hand, it may be a good time for first-time buyers to think about finding a house, because prices are dropping now, and will increase again in the long run.”

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