Property Prices Will Continue to Fall in the UK

Posted by admin in PropertyMar 30th, 2009 | Comments Off

Property prices in the UK are dropping, and some economists predict that property prices will continue to fall for some time. The credit crunch, non availability of mortgages, and pulling out of buy to let speculators, has caused property prices to take a nose dive. This trend in falling property prices has been caused by artificially rising property prices. Mortgage companies added to this artificial rise by offering 100% mortgaging. Now people who want to buy property are finding it hard to find mortgage companies who are ready to offer mortgage loans. Secondly everybody is waiting to see how low the market will go. Investors have stopped buying properties. People who are straddled with debt are finding it increasingly hard to sell their properties. A property is a long term investment, and is not like a share. The prices do not vary daily. The downward trend in property prices is not so acute in Scotland. If you are in dire straits and need to sell your property, then sell it, if you think you are getting a good price. Property prices will only stabilize once the rest of the economy stabilizes, and that may not happen soon.

Recession Hits the English Economy

Posted by admin in RecessionMar 1st, 2009 | Comments Off

The pound has started deprecating in the currency market, and exports are down. The stock markets are doing marginally and recession is affecting England. Consumer spending is down and property prices are falling. The bank of England has tried to shore up the economy, but the fact is that the global financial crisis has hit England. Big or small, all business houses are looking at losses, and are trying to find ways to work through these hard times. The first solution that most business houses take is to reduce costs, and this generally means reducing employees. This causes unemployment to rise and this adds a further burden to the economy. The government with the bank of England is looking at solutions to reduce the impact of recession. But any solution is not going to solve the problem of recession overnight. Money may be injected into the stock markets and into collapsing banks and large business houses. But what about the small businesses, or businesses that largely depend on off-shore customers. Their problems will only be solved when the world economy improves. Until all the major economies of the world work through the global financial crisis, things will not get better. So the only hope remains with tightening the belts and praying that the financial gurus come up with a solution.