Property Rescue Blog

According to the property group, Savills, home values in the UK will likely fall by 6.6% in the year 2010. After that, the group predicts that prices will rise and fall in a tumultuous way over the next five years.

As a part of the ongoing housing market crisis, it is being reported that the number of mortgages that require a 15% deposit has risen in the last month from 189 to 226; this is the highest number in over a year. House Buyer's Mortgages requiring a 25% deposit have fallen, but still account for 66% of mortgages in all.

According to the accountancy firm PricewaterhouseCoopers (PwC), 9% of all total outstanding debt balances will be made up out of credit card debt by the end of the year 2010.

According to the chief economist of the Royal Institution of Chartered Surveyors, Simon Rubinsohn, economic recovery is going to slow due to the upcoming end of the stamp duty holiday. Indeed, Rubinsohn notes that the end of the holiday will have major repercussions for many in the UK - especially first-time home buyers.

As 2.47 million people in the UK remain unemployed, a recent CIPD report brings up even more bad news. According to the report, lower hiring levels and a reduced labour demand have converged to make the situation even worse.

In a surprising twist on what was generally expected, the manufacturing sector has lost 8.5% of its jobs, while the business and finance sector has lost only 3.8%. Due to the bank crisis, many believed that the white collar job market would suffer the most. Instead, more blue collar workers have turned to sell house fast options due to a lack of work and a struggle to pay bills.

According to the Nationwide, house prices in the UK were higher this October than on the previous October. Indeed, a 2% increase was noted; the average price was £162,038. However, the pace has leveled off and the increase in house prices seems to be losing steam.

In response to the disproportionate number of arrears and repossessions associated with self certification mortgages, the FSA has announced that plans are in place to increase regulations and laws regarding those mortgages. It appears that a great deal of the current housing market crisis is owed to those financial products.

In order to prevent another mortgage crisis, the Financial Services Authority (FSA) has announced plans to make prospective homeowners pass a mortgage affordability test before being given a mortgage on a new home.