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Hennessy Bowie & Co has been practising in Bishopbriggs for some twenty five years, principally in the areas of domestic conveyancing, commercial conveyancing, commercial leasing, executries and matters relating to care for the elderly,

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CML predicts steady improvement in 2014

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The housing and mortgage markets look set to continue to show greater levels of activity in 2014, according to the latest forecasts from the Council of Mortgage Lenders (CML).

However, the CML sees an unbridled housing boom as unlikely. Indeed, given the already stretched nature of household finances, the new regulatory environment and the likely future course of interest rates, it believes that housing market activity may well ease back of its own accord.

The CML is forecasting a rise in gross lending from an estimated £170 billion this year to £195 billion next year, and £206 billion in 2015. The CML anticipates that net advances are likely to rise from £10 billion this year to £15 billion next year and £20 billion in 2015.

The CML anticipates that the number of mortgages 2.5% or more in arrears is likely to stay stable next year at around 150,000, but rise modestly to 160,000 in 2015. The number of repossessions is expected to fall from around 30,000 this year to 28,000 next year before returning to 30,000 in 2015.

The CML's forecasting horizon covers a period when the Bank of England may consider increasing interest rates. While this is likely to have a greater impact from 2016, the CML considers that the benign period of falling arrears and possessions may be coming to an end – although it thinks that most households will cope with the transition to more normal interest rates.

CML chief economist Bob Pannell concludes:

"Despite a strong pick-up in gross mortgage lending, we have pencilled in relatively modest net lending figures - £15 billion in 2014 and £20 billion in 2015. While this would mark a climb out of the sub-£10 billion doldrums, where the market has languished since the credit crunch, it does nevertheless represent a rather muted position. This reflects, among other things, our view that some households will use the relatively benign economic conditions to prioritise debt repayments, ahead of medium-term interest rate rises.”

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Contact us for advice on buying or selling a house in the Bishopbriggs, Lenzie and Glasgow areas. To make an online enquiry please click here or call us on 0141 775 0005

 

Hennessy Bowie & Co has been practising in Bishopbriggs for some twenty five years, principally in the areas of domestic conveyancing, commercial conveyancing, commercial leasing, executries and matters relating to care for the elderly.

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