RICS: CML November mortgage lending figures

Simon Rubinsohn, RICS chief economist said: "It is clear that the credit crunch is hurting the housing market. Lenders are becoming more selective in whom they are willing to advance funding to.
An early easing in the liquidity squeeze seems improbable despite recent action from the Bank of England. As a result, we expect that some would-be-buyers will struggle to get the necessary finance.

"Crucially, however, the prospect of further interest rate cuts has increased following the dovish tone expressed in the minutes of the December MPC meeting published yesterday. We expect base rates to be lowered by at least another half point during the first half of 2008. This will provide an important layer of support for the housing market, helping to offset the threat posed by the increase in mortgage outlays as the resets for up to 1.4 million homeowners fall due."