The recession 10 years on…
Since the 2008 economic crisis where house prices dropped by a huge 20% over a 16-month period and transaction numbers fell from 1.65 million down to a frighteningly low 730,000 in June 2009, the Government have introduced schemes to try and help the property market recover.
The first of which was to remove the requirement for first time buyers to pay stamp duty back in 2010 and then the Help to Buy scheme was introduced in 2013 with a few changes made to it thereafter.
It took 6 years for the property market to return to normality however, in 2018 transaction levels have dropped as the housing market experienced a downturn on the 10th anniversary of the previous economic crisis of 2008.
In the month of August, a mere 79,000 property transactions were completed. Compared with the 2017 figures for the same period, sales are down by 4%. Legal and General believe that a quarter of all property transactions this year have been funded by cash from the bank of Mum and Dad.
The Help to Buy scheme is coming to an end shortly and it was hoped that there might be a rise in property transactions as people realised their time was limited to make the most of the Government scheme. Unfortunately this has not been the case, likely caused by the uncertainty surrounding the UK’s financial position post Brexit.
A governor from the Bank of England has admitted that if the UK leaves the EU without a deal in place, the financial crisis of 10 years ago will repeat itself.
In these uncertain economic times, many people face the very real prospect of redundancy. If you have a mortgage to pay along with the ever-increasing bills that are part of home ownership, this can be a very traumatic and difficult time.
Repossession is one of the most stressful things that anybody can go through. If you are unable to keep up with your mortgage repayments, your property will become repossessed by the lender and most likely sold at auction. If the sale price of the property doesn’t cover your outstanding mortgage debt, you will still be liable for the shortfall.
If you have been made redundant recently or you anticipate losing your job when the UK leaves the EU, please contact OK Property today. We have helped hundreds of people out of this stressful situation by buying their property and freeing them from creditors before arrears start to stack up.
It is important to explore all your options as quickly as possible to reduce the stress and potential hardship but by taking swift, positive action now. You can seize back control and reduce the impact of Brexit and the uncertainty it may bring to you and your family.