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SELL YOUR HOME QUICKLYGloomy outlook predicted for UK housing market
Housing Minister Caroline Flint has delivered a gloomy assessment of the UK housing market, according to Aboutproperty.co.uk. Addressing the Chartered Institute of Housing (CIH), Ms Flint compared the current market turmoil to that experienced in the 1990s, Aboutproperty.co.uk reported yesterday.
The housing minister explained that one of the greatest challenges facing the market at present was the tightening of lending conditions, which has attributed to a 49 percent decrease in mortgage approvals since last year.
After unintentionally revealing last month that house price decreases of 10 percent “at best” were expected, the minister admitted that house prices were indeed falling. But she added that market fundamentals, such as high levels of employment and lower interest rates, may ensure that the conditions of the nineties’ crash are not repeated.
Ms Flint also asserted that the Bank of England’s special liquidity scheme (SLS) and its investment in debt advice may help to solve the present crisis, Aboutproperty.co.uk reported. She conceded that “unforeseen events [of an] international and unpredictable nature” have severely damaged the housing market, leading to very challenging business conditions for house-builders, the website stated.