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UK Housing Market is heading for a second slump

According to the Scotsman newspaper “The UK Housing Market is heading for a second slump”.

The report says “WHEN the UK’s biggest building society warns of setbacks ahead in the housing market, we should sit up and listen. When the warning coincides with news pointing to a second-wave slump in the world’s biggest housing market, we should listen very carefully indeed.
For the past few months, commentators have been happy to pick up on the upbeat house price numbers from the Nationwide. Its latest survey said house prices in October were 2 per cent higher than a year earlier – the first annual rise for 19 months.”

It seemed this summer the slump was over, house prices continued to move towards levels of normality, but deep down many new that it may be a long wait before seeing a truw return to prices that reflect stability.

With Nationwide reporting the loss of 62 per cent on the level reported a year ago, things arent as healthy as was first expected.

The commentators view is that high unemployment and continued threat of redundancy is still having a strong effect on the house market. Confidence has turned low since the latest news of even more money than first thought went into mortgage lending institutions last year. And, like Britain, America’s recovery is dogged by rising unemployment. What appeared to be encouraging signs of recovery are now being snuffed out by a climbing jobless total which is forcing up arrears and foreclosures. Unemployment is a lag indicator and most are agreed our jobless total will continue to climb .

posted by Zane in Housing,Lending,Mortgage,Recession and have No Comments

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