Property Crumble

In the UK, interest rate cuts since the start of the crisis have delivered the average £103,000 floating rate mortgage holder an annual saving of £4,635. Against that, the government estimates the net cost of bailing out the financial system at £10bn – or £400 per household.

In truth the same mortgage support has been provided to homes in economies across the developed world.

And, whilst economists don´t know how or when that support will be removed, there is little doubt that it will be removed and hence house prices face a major deflationary impact sometime in the near future.