Wednesday, January 11, 2012
High house prices needed to support SME’s
Entrepreneurs often secure loans against their homes, but with house prices forecast to stagnate or fall, lenders may not be keen on helping out.The government is pinning a lot of hope on the economy rebalancing. It wants manufacturing, inventions and exports to take the place of high street spending and government outlays. It wants brave new entrepreneurs creating jobs with brave new businesses. The obvious hurdle to all this is the crisis in the eurozone â€“ currently the UK's most important trading area â€“ which is rattling business confidence and hurting exports, as indicated in Wednesday's widening of the trade deficit.But another significant obstacle to the private sector picking up the slack from a shrinking public sector is a shaky housing market.