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Houses only changing hands once every 20 years, says CML

The levels of house sales over the past few years means homes are now only changing hands once every 20 years, according to the CML.

Giving its predictions for the mortgage market in 2011, the CML says there will be around 860,000 property transactions next year, down from its estimate of 890,000 for 2010.

This compares to pre-crisis transaction levels of 1.6m a year.

However, it says the figure for 2011 is very similar to the levels of the three previous years.

It also predicts gross lending will reach around £135bn, the same as its 2010 estimate, and net advances will reach around £6bn, £3bn down on its 2010 estimate.

The CML says the number of cases in arrears will edge up slightly, from an estimated 175,000 in 2010 to 180,000 next year. Possessions will mirror arrears, according to the CML, by increasing slightly from an estimated 36,000 this year to 40,000 next year.

It says remortgaging will remain low due to the continuing prospect of low interest rates – which the CML thinks will possibly remain at 0.5 per cent throughout 2011 – and flat or modestly falling house prices.

It also predicts continuing funding difficulties and uncertainty surrounding the MMR will reinforce cautious lending.

The CML’s newsletter, News & Views, says: “Activity in the housing and mortgage markets is set to remain broadly flat in 2011 and we do not envisage a return to lending levels that characterised the middle of the last decade for many years to come.”

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  1. The above article – Aboloute rubbish!!!! – It is a question of when will the so-called experts learn to start talking sense! The article should finish off by saying the levels of lending that occured in the middle of the last decade should never happen again. Wiht the use of enforced sensible guidlines on lending. It was the ridiculous rise in property prices coming from obscene lending practices that brought this economy to a crash! Why is it that the majority of experts/UK public think that a healthy economy is where high prices is a good thing?! Only for bankers and estate agents! Prior to the rise – the rate at which properties rose in value was originally related to the cost of salary/cost of living. A recent program on radio4 hosted by leading economist explained the obvious! The massive rise in property prices created an unstustainable market and high debt/bailouts. So why are there so many articles on the web treating a drop in house prices as a bad thing. (except for the bankers, estate agents and existing property owners) For the whole population property prices do have to drop for their to be sustainable market where estate agents & banks earn a living and not a steel! If the public had not been so greedy on trying to make that quick buck off their property we all would’nt not have been bailing out the banks and watching pathetic news of ”bankers leaving the uk” if their bonuses are curtailed! This whole affair is pathetic and to a point embarrasing regarding the articles.

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