A Year On
It is now one year on from the beginning of the Credit Crunch that initally opened it's flood-gates on August 9 2007. A year on it is reported that the average cost of a home in the UK has dropped by 10.5% during the 12 months which means that the housing market is dropping at the fastest rate in 18 years.
In August alone we have seen a 1.9% drop and means that the house prices have continued to fall consecutively for the past ten months.
It has also been noted that approvals for new home loans have fallen 65 percent in the year.
2008’s now infamous credit crunch has meant that the banks are tightening their purse strings with many refusing to offer mortgages to those who wish to purchase a home with anything less than a 25 percent deposit.
In London the property market has deteriorated sharply and asking prices have dropped by £21,096 to an average £379,162 in a month.
So in a time when prices are reduced at such a large rate it still appears that properties are difficult to sell – perhaps even more so than previously.
(Thursday, August 28, 2008)