Friday, October 24, 2008
Remember the last recession?
Although the UK was technically out of recession by the time it left ERM on so-called Black Wednesday in September 1992, its effect continued to be painfully felt, especially in areas that remained in negative equity. Sarah Stewart, now 48, believes it cost her marriage. Three years after buying her flat in Newcastle for £18,000 in 1991, she moved south to start a new job and tried to sell it but it was now worth less than she paid for it. An offer came in for £15,000 but the lending bank - as many did at the time - said that was too low. Meanwhile it was regularly getting broken into, so repair costs were mounting. "I handed back the keys because I couldn't cope with it anymore," says Ms Stewart, who is now a city councillor on the south coast.