CML: mortgage funding prospects “uncertain”

Permalink: CML: mortgage funding prospects “uncertain”
by Gill Montia

Gross mortgage lending in December stood at an estimated £11.7 billion, according to the Council of Mortgage Lenders (CML).

The total falls 12% short of the £13.2 billion recorded in November but is up 12% year-on-year.

In fact, December was the fifth month in a row to show annual growth in mortgage lending, with 2011′s fourth quarter total of £37.3 billion up 11% on the final three months of 2010.

For last year as a whole, lending increased to around £140 billion, compared with £136 billion in 2010.

However, the CML cautions that the increase is from a low base and with economic prospects challenging, the UK housing market is likely to experience a weak first half in 2012.

The eurozone crisis, higher funding costs for lenders and the troubled state of household finances are all likely to have an impact.

The CML’s chief economist, Bob Pannell, comments: “There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year.”

He adds: “But, continuing Eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call.”