The CML’s forecasts for housing transactions and gross lending remain unchanged, at 700,000 transactions and £145 billion of gross lending. However, the outlook for net lending appears less negative than previously forecast, and the CML now expects net lending to fall by only around £5 billion, compared with the £25 billion contraction previously anticipated.
The CML observes that:
"The raft of measures taken by the authorities have stabilised the economy and will sow the seeds for a recovery over time, including in the housing market. But the improvement is likely to be slow and drawn out, especially as the extensive fiscal, monetary and credit support measures are gradually unwound."
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