Demand for homes 'will support prices'

House prices will be supported by buyers' demand in 2008, the Council of Mortgage Lenders (CML) has predicted.

The March Market Commentary report reveals that mortgage lending figures did not suffer in recent months as much as had been predicted, with £29.6 billion lent in January and £29 billion in February.

According to the CML, these figures reflect a "remarkably robust" performance in the mortgage market.

The committee also commented on trends for house prices, saying that the "structural imbalance between the demand and supply of homes" would continue to buoy prices and keep them from dipping too low.

Falling house sales have been "in line with the quieter trend in mortgage approvals", the CML added, which had led to a "softening" in prices in recent months.

The most recent Halifax House Price Index revealed a slight dip of 0.3 per cent in house prices last month.


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