Property prices set to fall again
The latest dire predictions are that property prices are set to drop again and Buy To Let borrowers are set to panic sell to reclaim some cash. prices could fall by an average of 40% in total before we see a recovery!
The Government has been criticized for wanting lenders to lend at 2007 levels even though that was what brought about this situation in the first place! The £12.5 billion VAT cut has also come under fire as being pointless and taking money out of the free borrowing public coffers just when it is needed.
In addition, earnings on average in the UK have hit the lowest value since 2004, VocaLink who process 90% of the wages earned in the UK stated that growth slumped to just 2.4% down 0.3% from the previous month (Jan 2009). As you might expect manufacturing was hardest hit with a tiny growth of just 1.4%.
People who were ‘credit card tarts’ and changed their credit cards for the best deals thus avoiding paying their cards off have been hammered and are now paying the costs with all major cards changing offers and demanding payment for outstanding debt. Zero interest deals are now for a shorter duration meaning life is increasingly difficult for fickle borrowers.
You can get free property details at House Price Spy including sold house prices, growth month by month for the last 12 months and alerts on areas you are interested in!