Thursday, July 24, 2008
No mortgages=no sales
Four in ten house sales are collapsing in some areas as buyers back out or fail to get a mortgage, the Bank of England has disclosed. The new figure is yet another sign of the pain being endured by the housing market as the effects of the credit crunch work their way through. Large numbers of buyers were having to retreat from deals after having mortgage offers withdrawn by lenders. Other would-be buyers simply pulled out through fear that house prices could plunge even further than they have done recently, with some analysts predicting a fall of up to 35 per cent in the next two years. Property prices are falling at a rate not seen since the early 1950s.