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.”