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Mortgage article: Slower price rises would put housing market on a sounder footing

Friday 14 June 2002

The Council of Mortgage Lenders today re-iterated its view that the current rapid rate of house price increase is unsustainable. It also acknowledged the Bank of England's comments yesterday that the longer prices continue to rise rapidly, the more likely it is that there will be a sharper correction to the housing market. But it continues to believe that a combination of affordability constraints and modest increases in interest rates will produce a soft landing for the housing market.

The Director General of the CML Michael Coogan said: Next page

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