UK housing market set for quick recovery, says IMLA

The Intermediary Mortgage Lenders Association (IMLA) has said that the housing market in the UK will quickly recover from the current slump, despite mediocre figures released by the Ministry of Justice. 

The figures showed that repossession orders in the second quarter of 2008 were up 4% on the first quarter, and 24% higher than a year ago.

However, Peter Williams, executive director of the IMLA said that the sharp fall could lead to a fast recovery. He said: “Normally a self-correction in the housing market feels like an elastoplast being peeled off very slowly. What we’ve seen over the last twelve months is a quick, sharp rip.

“That should mean recovery comes more quickly than it has in past housing slowdowns.”

The IMLA said that there are two courses of action that must be taken to ensure the housing market recovers quickly: liquidity issues must be addressed so more mortgage options become available; and lenders and the government must work together to find ways to cut down on repossessions and keep people in their homes.

Mr Williams added: “Lenders are always working hard to keep borrowers in their homes until circumstances improve by rescheduling loans and payments, assisting moves and offering advice.

“To avoid repossessions for those struggling with their finances because of unemployment or relationship breakdown, the next step is for the government to revamp the income support for mortgage interest schemes.”

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