UK likely to suffer recession according to National Homebuyers

Britons are more likely to experience financial difficulties in the coming months than their European neighbours because the UK is more likely to go into recession.

[ClickPress, Mon Feb 18 2008] That is according to the director of the London School of Economics, who said that there are problems at the heart of the UK housing market which are similar to those which caused the UK market to crash.

If prices in this country fell on the same scale many people would find themselves in real financial difficulties.

During an appearance on BBC Two's 'Daily Politics' programme, Sir Howard Davies said: " It is partly that the government had an imprudent budget last year which has left [chancellor Alistair Darling] with not much room for manoeuvre, but let's face it, this recession was not made in London.

"I do think there will be a recession in the US; that is pretty clear now.

"We exhibit the same features of our financial system as the Americans do. Therefore if there is a crisis of confidence in mortgages in America, people look around the world and ask which other countries have had a run up in house prices where mortgage debt has expanded, and we have," he added.

Fast property sale expert Julian King adds, "I strongly believe that a recession is unlikely, but we should be aware that the number of property transactions in 2008 will be limited because of the hindrances facing the seller.

"The added cost of Hips, the inability of FTBs to get into the housing market, the tightened lending criteria and the falling property values mean many will be facing a difficult time when selling their property.

"Homeowners who need a quick sale will be encouraged to look at options other than the traditional open market [estate agency] route for selling their property.

"A quick property sale is not possible through an estate agent, unless you reduce your asking price dramatically, as the length of time to sell a property now reaches ten weeks".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer on any property in the UK, regardless of its condition or location. The company also offers the Sell and Rent back solution for homeowners to release equity, but remain living in their home.

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit