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Cambridge Centre for Housing & Planning Research


The Northern Rock crisis highlighted the vulnerability of the market to the problems caused by sub-prime lending. One effect was a slowdown in mortgage lending, and unwillingness to lend to more marginal borrowers. The recent falls in property prices, and predictions of further market turbulence have also created uncertainty in the housing market, for both buyers and lenders; first-time-buyers in particular entered the market in lower numbers towards the end of 2007 than at any time in the last 16 years. 

This study explores the impact of the recent housing market turbulence on the affordability of and demand for LCHO products, such as the HomeBuy suite, and the risks that this might present to social housing providers.