The CML's market briefing for September says the number of loans approved has dropped which will lead to a fall in transactions.
It states: “Approvals weakened in July. The number of loans approved for house purchase fell from 112,000 to 97,000, a fall of 13% over the month. We expect this to translate into a fall in transactions.”
But the CML says that even with such signs of a cooling in the market there is still the possibility of a renewed surge early next year.
It says: “The housing market is strongly influenced by confidence. The Bank of England may take its foot off the brake too soon and strong economic fundamentals coupled with lower than expected interest rates may engender a revival in confidence.”