Monday, June 2, 2008
Bought Too much / Borrowed Too much
Most of us think we have spent a decade buying into an unrealistic property dream, a BBC Panorama poll suggests. Some 79% of 1,000 people asked said the UK as a whole had been unrealistic about the affordability of housing. But 37% said they would still stretch themselves financially for property. Housing expert Steve Wilcox said many forget "prices go down as well". The survey comes amid a housing market which has seen prices fall by 2.5% in the last month. This is the first sustained fall in 10 years. At the same time, the supply of mortgages is drying up. The collapse of the sub-prime market has seen a 40% fall in lending over the last year.