The American property market has started its recovery
If you’ve been following the world news recently it’s apparent that both Asia and America are starting to recover. In Asia new record prices are being set for a few of the major cities and in America national house prices and sales are clearly out of the doldrums. However in the UK and for the rest of Europe we are still stagnant with little movement, apart from London.
Why are we not moving?
Well to answer this question lets take a look at why America are. Firstly, both the UK and the US have pumped billions of pounds into our banking systems. We are now beginning to see the results from these massive bail out funds. It appears that America have had more control over where their money has been spent. In the UK it’s apparent that this money has simply gone into the banks to sought them out and pay off old debts, so as everyone says, not only did they forget us into this mess but now the public are having to quickly get them out this mess.
In America they’ve made sure that this money has not got lost and passed it through to the general public, they have freed up their credit and have enabled many more consumers to attain mortgage. What we need to realise is that when our banks start lending the house market can start to trade and move on more freely.
The UK Property Market is also receiving a knock on effect from the European credit crisis, with Greece threatening to go bankrupt and Spain reporting the worst job data for eighteen years, a lack of confidence in our general economy is currently being felt.
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