Outlook for Interest rates

A string of bad economic news, has changed the outlook for interest rates. With US interest rates being cut to the historical low of 1%, many are now suggesting UK rates could quickly come down, closer to US Levels.

See: The Case for Lower Interest Rates

Other development in the Housing Market include:

• House Prices drop £30,000. According to Nationwide statistics, the average UK house price has fallen to £158,872 a 14.2% fall since last year.
• Nationwide also revealed that the average time for completing a house sale has increased to 12 weeks. This is due to the reluctance of homeowners to cut prices in response to falling house prices.
• Slump in Mortgage Lending: Net Mortgage Lending in the UK was negative for the first time since records began in 1993. The value of new loans extended was £100 less than repayments for existing mortgages.