Is the recession over?
It's been amazing to see more positive news then negative over the last three to four months. But as the market flattens, arguments have emerged between economists and property professionals on whether we are finally at the stage of recovery and recession over. Find out my thoughts in this week's property investment news.
The National Housing Federation tells us house prices will continue to fall until 2011 until the recession over. Bottom line, don't expect it to be a quick recovery and look forward to the Olympics as things will definitely look up for 2012.
Northern Rock is in the news this week, not surprising to hear they have again written off bad loans. Not all banks are experiencing the same difficulties. Barclays has made £3 billion profit due to their lending margin using the low LIBOR rate to make up their balance sheet. With certain bank's balancing their accounts we hope to see more competitive mortgage products hit the market.
Finally, Nationwide is leading the way to lower mortgages with cuts on fixed rates. Starting at 3.98%, this should create a bit of competition and get property back on the ladder thus recession over?.
As always, if you have any questions or want to have a chat about current opportunities call the team on +44 (0)207 923 6100 or www.ezytrac.co.uk.
Live with Passion,
Brett Alegre-Wood
