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.
Statistical data indicating impact of US subprime crisis on Europe:
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.