Earlier real estate agents could quote the prices of their choice while selling properties. However, things have changed a lot down the line. Currently, the price of homes are dropping and there is a probable fear that the recession may be reigning supreme in London next year. It is also being feared that the US Subprime crisis may be falling upon as a grind. Owing to this state of affairs, lenders around the globe are a bit apprehensive in extending new loans to debtors.

Impact of US subprime crisis on Europe:

Impact of US Subprime crisis on Europe cannot be ignored. That this part of the world will be impacted as well, can be concluded from the fact that signs of the same have already started showing (like falling prices of homes) in London.

• Northern Rock, which was an eminent mortgage lender took refuge in the Bank of England for purposes of emergency financing in the month of September, 2007. Prospective purchasers for the mortgage lender are still being looked for.
  
   
• Another instance in Germany, which implies the impact of US subprime crisis on Europe is when Germany 's IKB Deutsche Industriebank accepted USD$11.1 billion from the Government as a bailout pertaining to its various United States mortgage investments.
   
• BNP Paribas, the French Bank was compelled to take some drastic steps. It stopped all withdrawals from a fund of USD$2.2 billion pertaining to investment funds as the true value of the investment portfolios could not be ascertained.

  Statistical data indicating impact of US subprime crisis on Europe:
   

• Reports furnished by a mortgage lender known by the name Nationwide Building Society revealed that cost of homes dipped 0.5% in the month of December. In November the drop was 0.8%.
   
• According to another source, it has been revealed that during mid December, the prices of property dropped by 6.8%, that reflects an average downfall of approximately USD$ 56,000.

  The biggest impact of US subprime crisis in Europe is yet to come. It is being reckoned that in the forthcoming months, the economy will slowdown and become sluggish. As a result of this the rate of unemployment will also increase. Owing to this situation, the properties will have to be sold at a compromising rate.

  It is being anticipated by few economists that since the availability (supply) of houses are short of demand, the increase of price is being expected to be 3% in Britain and as much as 5% in London.

  Studies state that Britain is a country, which has the highest number of debtors. Approximately USD$2.7 trillion is yet to be paid back by the debtors of Britain on consumer loans.