The report highlights how, in the first eight months or so of the year, mortgage and housing markets continued a pattern of strong growth that had extended for a decade. In six of the first seven months of the year, the CML reported record lending figures. Despite the dramatic impact of the credit crunch from August onwards, lending totalled a record £364 billion in 2007 – £1 billion a day – and almost 6% more than the £345 billion recorded in 2006.
In the late summer, however, the run on Northern Rock was preceded by a lack of confidence that ultimately paralysed wholesale funding markets and resulted in the credit crunch. As events unfolded in the final months of the year, the industry came under intense scrutiny from the media, politicians and regulators.
But the reality was that, at the end of a dramatic year, almost 12 million households were successfully using mortgage finance to buy their own home, according to the CML. The overwhelming majority were acquiring a source of wealth and financial independence as they did so. Home-ownership remained overwhelming the tenure of choice. And 70% of the UK’s population were owner-occupiers, the majority fulfilling their aspirations with the help of mortgage finance.
Commenting on this, the CML said: “In such an unpredictable and rapidly changing year, we needed to regularly re-assess our objectives and priorities. Nonetheless, we continued to make good progress against the goals we set ourselves at the start of the year. The CML annual report 2007 records our achievements in a challenging year.”
For an in-depth look at the report, go to the CML’s website http://www.cml.org.uk/cml/publications/annreport.
