Bank tumult continues to stalk housing sector

London (Online-Unsecured-loans) September 22, 2008: After observing the fate of Merrill Lynch & Lehaman Brothers at the hands of the existing liquidity crunch, experts have predicted that the near future could see a further decline in the present residential property market. The fears of the further slump has instilled fears among the bank and lending authorities across the entire United Kingdom. As a result they have made the laws for loan availing procedure more stringent after following the current sequence of events. Also most of them have abolished the schemes where they were investing in the property.

Liam Bailey who is the head of residential research at Knight Frank, said, “ The 2-3 million pound homes the bankers tend to want are down around 10-12 percent year-on-year right now and this weeks' developments are likely to increase the speed of those falls. “ He also added, saying, “ We're observing around 1-2 percent falls in value on monthly basis and we expect to see a 20 percent slump in prices in all.”

This does not auger well for the loan market especially for the providers of home related loan products that goes by the names of homeowners loans/no fee loans/loans for homeowners in the UK loan market. Experts are keeping their fingers crossed, as they are hoping against hope that the turbulence in banking sector may just infuse the much-needed life in the already dying residential property sector. They are anticipating the names of Chelsea, Notting hill and Kensington to lead the way for them.

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