The first half of 2012 is likely to be weak for the UK’s mortgage market, it has been suggested.
According to the Council of Mortgage Lenders (CML), the initial six months of the year will be tough for the housing industry due to challenging economic prospects.
The organisation pointed out that while stronger mortgage lending activity was witnessed in the closing months of last year, this movement came from low levels, therefore reducing the significance of the figures.
However, house buying demand could soon rise should earnings begin to stabilise and consumer confidence is boosted as a result.
The CML stated: “Inflationary pressures have started to fall away sharply, raising hopes that real incomes may stop falling later this year.”
Despite this, uncertainty regarding the eurozone still looms large, which can serve to make funding conditions increasingly challenging and expose mortgage pricing to more upside risks.
The prediction comes after the CML recently reported that December 2011 saw a significant climb in year-on-year gross mortgage data, with lending in the month standing 12 per cent higher than during the same four-week spell in 2010.
