Housing market slowdown has started, says CML

The UK’s housing market has begun a period of slowdown, according to the latest assessment of the Council of Mortgage Lenders (CML).

In November, for the first time since July 2005, the gross amounts of money borrowed to buy property in the UK fell during a month to a lower level than was the case in the same month of the previous year.

But despite the fact that millions of people around the country are finding a debt solution increasingly difficult to come by, the CML is convinced that consumers are still keen to borrow money to get on the housing ladder.

CML director general Michael Coogan said: “As we had forecast, lending in November dipped below its 2006 – equivalent for the first time this year and we expect this trend to continue into 2008.

“However, while lending will be subdued in coming – months we see this as primarily a result of lack of available funding rather than lack of consumer demand.”

Last month, the CML predicted that debt management trouble would result in more home repossessions next year than has been the case in 2007.