Interesting study from Shelter
I am concerned that many thousands more repossessions have been delayed by low interest rates and this hasn't been factored into the wider picture especially with rising unemployment and a worsening economic picture.
Some say for FTB's and investors looking to get into the market, this will present a buying opportunity of a lifetime, and that may be true, but where will the finance come from if banks are finally forced to face up to the reality of all these bad loans on their books? Perhaps it will be new foreign lenders, awash with cash who will come in and hoover up all the business?
Property prices are strongly correlated with the availability of finance so this is an issue we all need to think about and factor into our business plans.
by Parmdeep Vadesha
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