Mortgage lending to home buyers has fallen to its lowest level since early 1992, with loans down a third in the past year. And because of this PRimage understand that the Bank of England is under intense pressure to cut rates – we hear that analysts say it is widely forecast to trim British interest rates on Thursday as it monitors fresh evidence of a housing market downturn amid the global credit crunch. Judy Viitanen, like many home-owners in the UK, is very concerned about the gloomy outlook for house prices over the coming year, with predictions of further steep declines and forecasts that property prices could fall by as much as 10%. PRimage hope that Britain isn’t heading for a substantive decline in the housing maket similar to that in the US – but as the credit crunch tightens its grip, we fear that this may indeed be the case!
And to add to these economic woes, PRimage read this morning that the dire news about property prices has impacted on sterling – with the pound falling to a record low against the euro (and it also lost ground against most other leading currencies!). Judy Viitanen hopes we can expect some aggressive interest rate cuts from the Bank of England…. watch this space!