The Council of Mortgage Lenders (CML) released its 2011 predictions for the U.K. mortgage market. It expects the U.K. to avoid a double-dip recession.
The group said that the recent weakness shown in U.K. house prices will persist for some months. However, it “does not foresee any sharp fall in prices, or large numbers of buyers holding off in the hope of getting a better price in the future.”
The CML expects growth to be a little over 2% in 2011, although it suspects that there are risks to the downside.
It expects the Bank of England to continue with a relaxed monetary policy and thinks it is quite possible that there will be no change in the base rate next year.