The housing market is expected to remain 'challenging' for those looking to get onto the property ladder in 2006.

The housing market is expected to remain 'challenging' for those looking to get onto the property ladder in 2006.

The Council of Mortgage Lenders (CML), a body designed to develop mortgage lending policy by responding to government initiatives, said that lenders would continue to "cater for all sections of the market" through measures such as an expanded Homebuy scheme.

The CML explained their stance following the latest residential property price report released by the Land Registry yesterday, which claimed that the average price for a house in England and Wales rose by 4.6 per cent to £191,327 compared to the same period in the previous year.

Bernard Clarke, of the CML, told Adfero that he expected house price growth to slow to around two per cent by the end of 2006 and into 2007 but added that "low interest rates, a sound economic backdrop and a shortage of housing supply will continue to sustain the market".

The Homebuy scheme helps eligible people to buy a home on the open market who could not afford to do so without assistance.