End of slump now in sight
The latest predictions coming from the property industry is that while it might be 2013 before we see the market recover growth at 2007 levels we should see a bottoming out of the slump during 2009, and growth after that time at a reduced rate.
People will need confidence, whats the point in buying when prices are still dropping. You can be sure that when some stability comes back and people are confident that prices will not fall further there will be a huge number of purchases made in the UK, and the economy will start to grow after that time as all the money that goes along with it is pumped into the economy. At that point everyone who has been waiting it out will enter the market and prices will start to rise.
At that point the Government, FSA and Bank Of England will need to mensure that the current ‘crisis’ cannot occur again.
Another story this week concerns renting properties, the price being asked is dropping as people tighten their belts in the credit crunch. Anyone who bought renting property in recent years and has had to re-adjust to tighter lending restrictions will feel this, the new lending environment has concentrated on homeowners with little regard of affects on businesses small and large.