UK House Prices Set to Drop

As the public sector lays more workers off, certain areas in the UK are going to be heavily affected. The latest warning comes amidst many job fears and the fears of sharp rises with the cost of living in the UK. The unemployment figures are getting higher, the reduction of public spending is starting to show.

It is thought that the average price of a home is already twenty percent to high. Maybe as much as thirty percent which will be a shocking statistic for homeowners to have to work through these negative equity situations.

Not a pleasant thought, that whilst paying off ones mortgage and working hard to get on top of your payments, the house is not even worth as much as you owe. This type of negative equity can result in many people loosing their homes and still being left carrying a large debt to the banks for many years to come. With the prospect of rising interest rates, this change in the values will happen far sooner then we are currently predicting. It cannot get much worse for the thousands of home owners who are already finding it very difficult to pay their monthly bills, keep up with their mortgages and the rising cost of fuel and foods. The areas that will be the most affected will be areas which have already high unemployment or are running off public sector work forces as the large employment situation within the region.

Some regions are expected to be so affected that they are increasing the number of job centers and workers within the job centers to help with this potential epidemic. We can only hope that something good gives way prior to this all happening as the current rates of unemployment are already very damaging for the UK’s work force. If these dramatic falls in the values of our homes are as bad as predicted it will help unbalance our economy even more then it already is. Does the Bank of England need to change its policy structure? can this help in any way? I think so, only the future will tell whether or not any changes will come about from this recent downturn in our economy. Best case scenario, in my opinion, is that prices remain in a stagnant state whilst incomes try to catch up across the UK. Here’s hoping for a good year ahead for the UK, as many of the other European nations are declaring growth within there economies. Daniel Zane London Daniel Zane is owner of London property inventories one of the UK’s leading suppliers of property inventories.

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