07-02-2008
Chancellor rejects idea of housing market crash
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The British chancellor Alistair Darling has rejected comparisons between the UK's current housing market conditions and those of the early 1990s.
Despite the fact that mortgage approval ratings are currently in decline and house price indicators are largely showing a fall in house prices, Mr Darling maintained the view that the current housing market is in significantly better condition than was the case during the early years of the 90s.
"Interest rates remain at comparatively low levels, as do mortgage rates. And unemployment is currently at 30-year lows," said Mr Darling.
"While many US mortgages were sold at hugely discounted rates leaving people unable to meet repayments when rates increased, lenders in the UK have been more responsible."
Mr Darling made his comments during the annual dinner of the EEF manufacturing body.