In the UK rising interest rates are causing house prices to fall sharply and in some areas as much as 25 to 30 per cent as reported by British journalist and author Oliver Kamm. The sudden crash in house prices is causing a number of people to get out of the market by selling their house quickly so that they can cash in on the value of their home before it plummets.
Many companies who deal with fast house sales are reporting a significant rise in the number of home owners contacting them. Many home owners have begun to struggle with their mortgage repayments following job losses and the negative equity that they face with their property is causing significant financial losses. The market continues to struggle and so many are finding a fast way out.
A number of industry analysts are attributing the sharp rise in property prices that occurred in the past decade to a lack of strict monetary policy from the previous government and low interest rates, causing a rapid property boom. At the peak of the property boom it was almost impossible for first time buyers to get a foot on the ladder but with the recent crash in house prices it is becoming much easier, albeit at a significant cost to homeowners who are facing negative equity and losses on their investment.
Negative equity in a home can seriously affects the financial stability of a home owner, particularly in the current economy when the workforce is required to be mobile and move jobs regularly. As the negative equity is preventing some homeowners from moving areas, the workforce is becoming immobilised which will have a greatly negative effect on the state of the economy.
The boom and bust property market has caused outrage with many home owners and there have been a number of calls from communities to industry analysts looking to change the way property finance works so that they can prevent this from reoccurring.
Many companies who deal with fast house sales are reporting a significant rise in the number of home owners contacting them. Many home owners have begun to struggle with their mortgage repayments following job losses and the negative equity that they face with their property is causing significant financial losses. The market continues to struggle and so many are finding a fast way out.
A number of industry analysts are attributing the sharp rise in property prices that occurred in the past decade to a lack of strict monetary policy from the previous government and low interest rates, causing a rapid property boom. At the peak of the property boom it was almost impossible for first time buyers to get a foot on the ladder but with the recent crash in house prices it is becoming much easier, albeit at a significant cost to homeowners who are facing negative equity and losses on their investment.
Negative equity in a home can seriously affects the financial stability of a home owner, particularly in the current economy when the workforce is required to be mobile and move jobs regularly. As the negative equity is preventing some homeowners from moving areas, the workforce is becoming immobilised which will have a greatly negative effect on the state of the economy.
The boom and bust property market has caused outrage with many home owners and there have been a number of calls from communities to industry analysts looking to change the way property finance works so that they can prevent this from reoccurring.
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