The Council of Mortgage Lenders (CML) has updated its mortgage and housing market forecasts.

It has also extended its forecast horizon beyond the current calendar year to the end of 2012, in the light of a more stable forecasting environment.

The lender body expects hesitant economic growth for the rest of 2011, as the pace of fiscal tightening intensifies and households suffer an ongoing contraction in real incomes. However, it also assumes a “moderately more positive backdrop”” approaching 2012.