16 December 2016
Mortgage lending ‘set to weaken’ in New Year
Worsening economic conditions are set to hit mortgage lending next year, according to the Council of Mortgage Lenders (CML).
Revising down its 2017 outlook for the mortgage market, the trade body said economic uncertainty has arisen following the vote to leave the EU, while tax and regulatory changes in the housing sector could also have an impact.
Elsewhere, the CML indicated that the number of properties being repossessed is also likely to start making its way upwards in the New Year. However, the repossessions total is still expected to remain reasonably low when compared with longer term trends.
Over the course of 2017, it is thought mortgages worth around £248 billion will be handed out. That is down on a previous prediction of £261 billion.
Meanwhile, in 2018, the CML now estimates that home loans worth roughly £252 billion will be advanced.
On a more upbeat note, the group said that despite the expected deterioration in the mortgage lending figures, the housing market is "relatively well insulated from Brexit" overall, compared with other parts of the economy.