(1888PressRelease)
November 16, 2007 - London (longdogfinance) : The turmoil in the UK financial markets has started to show its effect on the housing market also. There are many concerns in the top end UK housing market over a sharp slowdown there.
The nation’s fifth-biggest mortgage lender became one of the biggest victims of the summer's credit squeeze. Its business strategy of making huge home loans collapsed and it had to seek emergency funding from the Bank of England.
Tim Wright of the estate agency Knight Frank LLP said: "The market up to 2.5 million pounds has been the most adversely affected by the credit crunch largely caused by job/bonus insecurity for those working in the financial sector."
The repossessions have risen sharply as buy-to-let investors are facing the heat of high rate borrowings. Many lenders have made it difficult for the borrowers to get mortgages and other personal loans. Bad credit borrowers are already facing the tough times.
David Stubbs, a senior economist at RICS said: “The slowdown in both activity and price growth is unsurprising. The Royal Institution of Chartered Surveyors expects house prices to be flat in 2008 despite the prospect of lower interest rates.”
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