Many financial experts are expecting that ‘08 is the year that Britain heads into a recession - and following on from the recent credit crunch many are expecting for the next 12 months to be tough. In particular the sub-prime mortgage market is struggling, with some specialist brokers closing as a result.
However while some sectors may continue to suffer, there will be others who use the next 12 months to their advantage. The ongoing decrease in property prices will mean that it will be an easier year than 2007 for First Time Buyers to get on the property ladder. In December for the second consecutive month property prices dropped, with many experts expecting this trend to continue throughout the year. With 2007 seeing the average house price ‘peak’, many potential homeowners found themselves unable to afford a property - the number of First Time Buyers purchasing a home was at the lowest it has been since 1980.
Aside from a decrease in property prices, interest rates are also predicted to fall in 2008 - allowing FTBs to afford a property. However, lending criteria will continue to be strict following on from the credit crunch.
Posted in Property |
- Adverse Credit (1)
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