The Council of Mortgage Lenders (CML) has revised its market forecasts upwards in the face of stronger-than expected mortgage lending.
In the latest CML newsletter the Council says this year’s gross lending looks likely to exceed £200 billion for the first time since 2008 – up from the £195 billion it had predicted in December.
A strong economy and rising employment were underpinning demand in the housing market and helped prompt the revision.
However the CML says high interest rates, more lending regulation and affordability pressures could see housing market activity easing back next year.
“Several years of improving arrears and possessions may be coming to an end, as a gentle but steady climb in interest rates over our forecast period adds to the financial pressures facing some households.”
However arrears and possessions for 2014 and 2015 are still likely to be lower than previously expected, it says.
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