Mortgage lending this year and next looks set to be stronger than the CML had projected, and they have noted they expect gross lending this year to rise above £200 billion, for the first time since 2008.
They added that affordability pressures, reinforced by the prospect of higher interest rates and the new regulatory environment for mortgages, may nudge housing market activity lower through 2015 but at the moment, it is expected that housing transactions this year and next will be higher than predicted at the end of last year.
The CML continued:
"Several years of improving arrears and possessions may be coming to an end, as a gentle but steady climb in interest rates over our forecast period adds to the financial pressures facing some households.
Nonetheless, we now expect arrears and possessions to be lower in 2014 and 2015 than we said at the end of last year. Economic growth continues to underpin housing market sentiment and demand."
