Spokesman Bernard Clarke suggested that only the sub-prime market would be affected by a lack of products, whereas “The [overall] housing market continues to be underpinned by consumer demand for owner occupation, strong aspirations for owner occupation and there’s a shortage of supply.”
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He added that the CML was in agreement with the view of Kate Barker, a member of the Bank of England’s monetary policy committee, who said this week that there was no “immediately obvious” reason to believe the credit crunch would trigger a downturn in the market.
This contrasted with the views of the International Monetary Fund, which has said Britain could be heading for a major price correction.
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The Nationwide Building Society gave a downbeat assessment of the prospects for house prices in the next year, predicting zero growth in 2008.
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