CML Data Shows Drop in House Sales

An unusual drop in house sales has seen in January this year compared to December last. The CML data shows 29% fall in house sales, which was mainly because of the adverse weather, rising inflation and government spending cuts.

The Council of Mortgage Lenders (CML) said that potential home buyers might have discouraged due to the large spending cuts, increased tax measures and rising inflation in UK.Added to this there was uncertainty over interest rate rise and an unpleasant winter weather which caused buyers to move away from housing market.

The first time buyers only took out 10,500 loans in January which was 28% less than the figures arrived in December. The home movers took only 18,000 loans in January compared to 25,400 in December. The number of remortgage leans also fell in January by 6% than in December.

The CML director general, Michael Coogan however said that it would be premature to draw any conclusion on house sales over the next months from the January figures.Mr. Brain Murphy of Mortgage Advice Bureau also supported to this view.

Mr. Howard Archer of IHS Global Insight said that house prices would fall by 5% in 2011 and ultimately decline by 10% at the end of the year.

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