Several factors 'to protect market against recession'

Several factors have been outlined by an industry expert as measures that will help to protect the mortgage market from a recession.

In a speech at the Building Societies Association (BSA) conference in Manchester, the chairman of the body Iain Cornish said that the "resilient" jobs market and falling interest rates should mean problems like those in the late 1980s should be avoided.

He added that the current situation, which could lead to a "gradual unwinding" of imbalances in the sector, may also prove beneficial for both borrowers and lenders in the future.

"As long as it happens in that way, and the end result is a more sensible mortgage market and a more sustainable housing market, then in the long run we should welcome it," he explained.

"Whatever the scenario, societies are very well placed to succeed."

The BSA represents and promotes the interests of the UK''s 59 building societies.

According to figures from the organisation, around 2.5 million people are buying homes with the help of loans from such companies.

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