IMLA: 'Positive approach needed'

The UK housing market is not doomed as some commentators would have us believe and the negative attitude of many is in danger of causing a recession.

That is according to the Intermediary Mortgages Lenders Association (IMLA), which said that there are many positives to be taken from recent figures about the state of the market.

Peter Williams, executive director of the IMLA, has warned against 'talking ourselves into a recession'.

He made the comments after the publication of the Bank of England Credit Conditions survey, which was largely reported as negative but, he claims, contained some positive information.

"Demand for secured loans has remained buoyant, and indeed demand for buy-to-let and other (non-prime) loans actually exceeded expectations overall," commented Mr Williams.

"This suggests that despite the uncertainty of the credit squeeze and the consistently negative tone of the media, British consumers are still confident enough to want to borrow, partly because they take a longer term view.

"While lenders do expect an easing of demand for loans next quarter – we don't see British consumers throwing themselves off Beachy Head. We could easily talk ourselves into recession, and we see no logical justification for that," he added.

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