Property Rescue Blog

Just two years ago, the rate of people 55 and over who were planning to work beyond the state pension age was at 40%. Research shows that number has now jumped to 71%, which suggests that the current recession has decreased house values, investments and pension pots.

Research shows that more than 1 in 10 (16%) workers who currently have a pension report that they have recently stopped contributing to their pension at all, or reduced their contribution amounts, due to the credit crunch and tough economy.

UK residents are currently struggling with debt and unemployment at levels that most have not previously experienced in their lifetime. Over 2,000 people per day lost their jobs just during October, 2009, of which 1,500 per day filed for unemployment benefits.

November 2009 saw a record high in the UK’s public sector net borrowing, which reached £20.3bn.

In yet another blow to UK workers, the government has chosen to allocate funds to purchase 22 new Chinook helicopters. The government expects to receive the first half of the order in 2013, which will possibly be used in Afghanistan. To help pay for this planned acquisition, Bob Ainsworth is expected to announce the phasing out of numerous defense jobs and the closure of at least one military base, most likely RAF Cottesmore in Rutland. This will lead to the loss of thousands of jobs, increasing the UK unemployment rate even further.

Just one day after learning that the Borders UK book chain went into administration, which could result in the loss of 1,150 jobs, we learned that the UK’s largest independent off-license retailer, First Quench (Threshers Group), has also gone into administration.

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.

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.

According to the Centre for Economics and Business Research (CEBR), interest rates in the UK will remain low for years to come. The current level of 0.5% will hold through 2011, and a rate of 2% won't occur until approximately 2014.