As the year draws to a close, many people have been asking me where I see the property market going in 2012. Well, no one knows of course but my best guess is that it don’t look good. I’d say there’s a strong chance we could be heading back to the post-Lehman crunch of 2008. The possibility of Greece, Portugal, Ireland and others being unable to repay their government debts seems scarily real. Technically those countries are already bust and are only being propped up by massive international help. The problem is that if those governments can’t pay back what they have borrowed, then most of Europe’s banks – who have lent them the money – may also be facing bankruptcy. And we know what happens when banks collapse. Think Northern Rock, RBS etc. House prices would nosedive and the economy would follow. Let’s hope I’m wrong…
Dec 292011
It’s the lack of available mortgages, higher deposits for first-time-buyers and stricter credit checks that’s creating a stagnant market. Banks need to do what they’re supposed to do. LEND!!!