With the current Economic climate being what it is and no sign of it letting up, The property Market looks uncertain. Although April recorded a slight rise in property sales and prices it unlikely they will return to their former glory anytime soon.
With unemployment at a record high since 1997 is there a light on the Horizon?
With mortgage lenders and Banks still not allowing borrowing is there any real hope for first time buyers or even those in financial difficulty currently in their own homes??
If the banks refuse to lend, times are not going to get any easier, it’s almost like they fail to comprehend that lending will stimulate the economy, companies need credit to expand and to recruit, and Consumers need credit to buy the products companies are offering.
So with house prices continuing to fall, and lenders hoauding their cash is there any hope of the property market recovering in the near future?
Banks believe lending in an economic downturn is an open invitation for Trouble so they will not lend on current Mortgages or give mortgages to first time buyers. This in turn will increase the downward spiral that the property market is currently on.
The amount of Houses that are being reposed has dramatically risen in just the first 6 months of this year, an increase of more than 30% on last years figures resulting in 14,000 properties being repossessed.
So is there light at the end of the tunnel? Well unless the banks help Joe Public then we are likely to remain in an economic downturn for the foreseeable future. This doesn’t provide any comfort for those in dire straits and already tightening the purse strings.