House Prices Recovery Delay
Published / Last Updated on 29/04/2008
House Prices Recovery Delay
According to the Council of Mortgage Lenders, the turning point in house prices could be delayed until next year unless mortgage approvals begin to rise in the next few months. This is due to the credit crunch entering a new phase and banks tightening their lending conditions further.
Senior economist at the CML, Jim Cunningham said “The financial market conditions remain unsettled and it will be some time before we can be confident the situation is improving”.
Our view
We suggest the CML is talking up house prices. We suggest with limited liquidity and lenders reluctant to over lend, house prices will not recover until earnings and salaries catch up. In short, we suggest two years before we start to see any recovery.
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