There appears to be further depressing news on the horizon for those of us who are on the housing ladder and want to take leave of it! With the rate of inflation in the UK increasing way ahead of the Bank of England’s optimum rate; an approaching likelihood of borrowing rate increases and many job losses due over the upcoming 12 months, the chances of the home market growing or simply remaining at existing levels are slight. Not a great outlook for those people who need to attain a quick property sale. They are regrettably about to experience a further twelve months of aggravation and money worries as the financial upheaval takes effect yet again.
There seems to be no controlling inflation at the moment, even though government cost saving and redundancies are due across most sectors people still need to eat, put petrol in their vehicles and cover their heating bills. So increases in food stuff and fuel prices (which directly alter our inflation calculation) are already biting, pushing that rate much higher than desired. The VAT percentage has just been raised too, and after that will come the result of the redundancies in both public and private sector. The problem is that inflation will continue to rise because most of the calculation is based on these essentials, most of which are growing in cost as we predict.
As this carries on rising the Bank of England will be subject to more pressure to raise borrowing rates and hey presto, the property market is shrinking once more. It is not difficult to understand why those who are not currently mixed up in the property industry are staying well clear. The situation is so fragile at the moment that all but the most bold are keeping clear. First time purchasers may be as well to bide their time, if the tendancy continues there will be lots more bargains to be picked up in the next few months ahead as prices lower and owners who need to sell house fast become more and more fraught.
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