Property Rescue Blog

Personal debt has been on the rise in Britain for some time now, but new research shows that the rising cost of interest payments is poised to become an even greater burden on many households.

The budget deficit is expected to reach £178 billion this year, which is 12.6% of the Gross Domestic Product (GDP).

UK airports are seeing fewer passengers these days and the number of travelers continues to decline. A total of 216.8 million passengers took flights in 2009, which is a 7.4% drop from 2008 and the lowest number of UK air travelers since 2004.

According to the British Bankers’ Association (BBA), the rush of buyers trying to beat the end of the stamp duty holiday was at least partly responsible for the continued depression of the mortgage market in February.

Petrol prices are once again on the rise and poised to reach a record high over the next few weeks. Currently, the average petrol price is approximately £1.15 per liter, but that is expected to increase to a new record of £1.20 per liter.

It is no secret that personal debt has been steadily increasing for over a decade and that the number of people going bankrupt or being declared insolvent has risen alongside it.

The Council of Mortgage Lenders has released a report showing a slowdown in mortgage lending in recent months.

A recent Halifax report states that there has been a significant slowdown in the UK housing market and mortgage lending sectors in recent months.

Throughout 2009, and particularly in the last quarter, the number of residents in England and Wales declared insolvent rose to a record high. Figures released by the Insolvency Service show that 35,574 people were declared insolvent just in the last three months of 2009, showing the depths the recession has reached.

Most concur that the UK simply cannot afford having political parties play games with public finances during this challenging economic climate and just before the upcoming elections; however, the Budget to be released on 24 March – which is the last Budget prior to the coming general election – may include damaging tax rises.