The 2009 Annual Report for the Council of Mortgage Lenders (CML) was published last week. It signals hope for lenders and borrowers in the current climate. On the back of the elections and the disarray the election results caused, this is indeed welcome news. The report says that although the property market is still a bit rocky things are improving. The property market nearly came to a standstill during the height of the recession but in 2009 we started to slowly but surely come out of the recession and begin the steady climb upwards.
Despite the findings in the report, the market still remains ‘small and adverse risk’ according to CML News and Views which states the following:
“There are still enormous challenges ahead for lenders in a market in which there are:
- too few participants;
- insufficient funds to meet demand from borrowers – with the prospect of mortgage rationing; and
- huge regulatory and political uncertainty, compounded by the mammoth fiscal deficit. ”
Nevertheless, the report is encouraging as it outlines recommendations for the way CML will help overcome these challenges. With a new Tory/Lib Dem Coalition government now in place the CML will continue with regular meetings with key figures in the government to discuss new policies and identify issues relating to lenders.
Let us hope that with a change in government we will start to see more flexibility in terms of lending and greater movement in the property market.