Average UK property has lost £30,000
There are load of predictions about the property market and the financial situation. The property market is well known to be the main indicator of how an economy is doing, with lending down to record levels and the Bank Of England slashing the mortgage rate month on month there is less and less money to be made and therefore lent by the finance industry.
There are plenty of predictions to when property price will start to rise again, in the last couple of days I have read contradictory time periods one of 2 to 3 years and 1 year, however it looks like the end of 2010 as a safe bet.
Meanwhile, Irish banks (Anglo Irish Bank and Bank of Ireland), once seen as the savior of millions of invested Pounds Sterling are now warning savers that they are no longer covered by the compensation package issued by the UK government. Any compensation would have to be given by the Irish Government, this comes after a decision by the FSA after the Icesave collapse last year.
A joint report by Morgan Stanley and Royal Bank of Scotland Group is predicting that on average properties will lose as much as 45% of their value from August 2007 to late 2010. To bring this into perspective a report by the Nationwide states that the average property in the UK has lost £30,000 bringing values back to 2005 levels, this based on an average property value of £150,000.