The current state of the housing market continues to affect tenent loans and it appears as though they will be in short supply for many years to come. In fact, many wonder whether or not tenent loans will be offered by banks once the dust from the housing crisis settles and they change lending practices.
“If prices continue to fall at the pace they have done over the past three months, they will end the year down 15 percent,” said George Buckley, chief UK economist at Deutsche Bank. “With inflation, this means that residential real estate will have lost around a fifth of its value in real terms during 2008.”
“The (UK) housing market downturn seems to be gathering pace which delivers a further blow to consumer spending as the wealth accumulation from the housing market dries up,” said Adam Cole, global head of FX strategy at RBC Capital Markets.
“We expect the next move in the Bank Rate to be down, but the extent to which this will revive the mortgage and housing market is likely to be limited while overall confidence in economic and housing market conditions is low,” said Fionnuala Earley, Nationwide’s chief economist.
Related reading: Tenent Loan
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