2007 has been a difficult year for UK property. Whilst there is no sign of the threatened property “crash”, there is no escaping the fact that the market for both residential and commercial property is currently very deflated.
The year started off very well with house prices continuing to rise. But no fewer than 5 interest rate rises over the last 12 months have lead to the cost of borrowing increasing and the demand for purchased property decreasing. Not only has the cost of borrowing increased, but lenders are (at last) tightening their lending criteria in view of the “credit crunch” meaning that new mortgage lending is at a three year low.