More mortgages but lower prices
As we report in today's paper, 2012 is likely to be year of conflicting trends in the housing market. While new mortgage lending will probably increase from the extraordinarily low levels experienced in 2011, house prices will almost certainly fall even further.
In 2011 a mere 12,000 new mortgages were advanced, down by a massive 94pc on the levels recorded in 2006. This is the lowest level of mortgage advances recorded since statistics first began to be kept 40 years ago.
Now that the banks have been recapitalised there is likely to be an increase in mortgage lending in 2012.