UK Recession cuts in – housing market in crises

UK Business Contributor

The UK’s housing market is in crisis again.   Just when it was thought that the worse of the financial crisis hitting the country was over, it seems that there is more bad news on the horizon.

According to figures released yesterday from the UK Office of National Statistics, home moving has dropped to the lowest levels ever recorded.  Home owners who are keen to move are stuck as lender‘s are demanding very high deposits, stamp duty has gone up to unaffordable levels and in any event lenders remain not all that keen to participate in funding this troubled market even with interest rates at 0.5%.

Ten years ago, 600,000 young people a year bought their first home, now only 200, 000 are doing so.

The UK’s situation is not much better than that for developed Europe with France and Germany being similarly affected.  It is clear that 2011 is going to be a tough year not only for homeowners in Europe.

Have you been affected by the housing market? What are your views on how to fix it in Europe? Let us know…

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