In an attempt to solve the long term recession forecast, the Bank of England has cut official interest rates by half a percent to 1.5 percent...the lowest level in its 315-year history. So what will come of this?

Its hard to ignore the effects of the global credit crisis at the moment, house prices are falling, consumer spending has decreased and major retaillers have collapsed under the pressure. It seems that no-one is immune from this, as we saw the demise of Woolworths recently after nearly 100 of trading. The future might appear bleak but as with the previous recession of the early 1990s, we might see a light at the end of the tunnel. 

There is no doubt that the bank of England is under pressure as this latest cut moved them closer to the limits of monetary policy with a 0% interest rate. Now there is increasing pressure to avoid deflation and solve the effects of a weakening sterling whilst at the same time do everything it can to slow the impact of the recession. A big effect of this has been concentrated on house prices in the UK. Property no longer is the stable market that it was as the Housing makret has suffered its worst year on record falling by up to 16%. A similar pattern has been seen in the Service Sector, which makes up 75% of the UKs economy, where the fall was at a record pace in 2008 according to a survey by the Bank of England (BOE). 

On a more uplifting not, the BOE have given a warning about lending to houses and business is set to fall at the beginning of this year and consequently leading to more businesses going under and another fall in house prices. Whilst we are trying to protect our ecnonmy and increase people's confidence in the economy and securing jobs, can we really see when this will stabalise?

Yet we must look to the positive effects of the interest rate cuts and how this can jump start the depressed economy. With the co-operation of banks and other lenders to pass on the cuts we could see a positive effect. This will take a bit of time but the effects can be just what we need. The more support that is on offer from Banks and the Government alike, we must see any proposed changes as a step in the right direction. At least the Government and Bank of England are actually being proactive and creating solutions...however debatable they are!

Are you suffering from the effects of the failing property market? If you are looking for help and advice on selling your home then UKHousing.com can provide you with an answer. UKHousing.com provides people with the means to sell their house privately and without estate fee. We have a extensive portfolio of houses for sale UK all by the owner. Visit www.UKHousing.com and see how you can save money on your House Sale. 

Did you know that you need a Home Information Pack for all homes put on the market on or after 14 December 2007? The responsibility of ensuring a property has a valid hip lay with the party marketing it. In most cases, this will either be the seller or their estate agent. Therefore, if you are using www.UKHousing.com private seller’s service, the responsibility is with the private seller.

Exceptions:

Homes meeting these descriptions and put on the market before these dates will not need a pack:

1 August 2007 – homes with four or more bedrooms

10 September 2007 – homes with three bedrooms

14 December 2007 – homes with two bedrooms or fewer

You do not need a Home Information Pack for:

• Properties where there is no marketing (e.g sale to member of your family)
• Non-residential properties
• Seasonal and holiday accommodation
• Mixed sales (e.g. shop with flat)
• Right to buy and similar sales
• Sales of portfolios of properties
• Properties not being sold with completely vacant possession
• Unsafe properties and properties to be demolished

More information can be found here

As a first time buyer I want to know when god.. jehovah, allah, yahwe or the universe is going to give me  a break! 

I’ve been in the home owning wilderness for the past five years and being treated like a leper by the home owning democracy, for being too poor to join their club, despite earning more than the national average wage. I was also sadened by a Guardian Article on first time buyers and the cost of deposits.

Picture the scene...Me and my significant other at dinner parties and so desperately wanting to be able to say, “yeah...my house as gone up by 10k last month alone..” and “..gemma and I are thinking of upsizing soon...

I felt like Charlie of Charlie and the chocolate factory fame. Pressing my face against the shop window, looking longingly at magical creations of houses for sale UK on display but knowing that I could only hope to imagine the taste of what lay within, as no matter how much I hoped, the chocolate treasures would remain out of reach.

Well, with the recent falls in house prices I  could see my dream becoming a reality.. Once again I am Charlie… The Americans with their woeful oversight of their financial institutions have given me the bar of chocolate that I’ve been waiting for...

Tentatively, I ease the wrapper away from it contents and see something foreign.. It’s the ticket.. I find myself clawing at the wrapper, unble to control my fingers, my mind racing unable to comprehend or accept the possibility that I’ve may have found the ticket.  Yes I have the golden ticket!

I can now join the club.

The only problem is, when I present my golden ticket at the gates of the chocolate factory to a guard, let’s call him Mr Banker, (rumours are that he’s not very good at his job  and I hear he over indulges from time to time), he tells me that this golden ticket is no longer valid because of Mortgage rationing.

Now I'm only 8 years old and have no idea what that is… So I’m back outside the shop looking in… (again). 

But come on...didn’t we give you guys bucket loads of money not long ago?.  The decent thing to do would be to some a little back. 

I’m advocating responsible lending not, punitive lending. 

If I were a cynic I’d say that banks really don’t want to lend any money because they need to pay the government back the money that was lent, so they can get back to paying incompetent staff mega bonuses...but that’s if I were a cynic.