Britain’s real estate sector in death trap!

We have already stated for several times that the financial situation of Britain, thanks to the worldwide downturn, is receding. What is the real situation therefore? Is it still plummeting or showing brawny signs of recovery? Well, according to the financial gurus, nothing is good and the plunging pound, surging rate of unemployment and stagnant real estate sector has added salt to the gaping wound. What’s more, there are fears that this will continue for the time being and there may be the possible collapses of banking system too.

It is becoming evident that the country is facing its worst economic position amid the global financial crisis in the period of last 30 years. Even the official quarter 2008 figures could be the worst since a 1.8 percent drop in the second quarter of 1980! If you can remember, it was the period of deep recession after the (then) new government of Prime Minister Margaret Thatcher raised interest rates to restrain double-digit inflation. What are the most crucial reasons that have led to the increase of woes for Britain? If anyone accuses the global recession for the depression, it can’t be accepted.

The only reason behind this deduction is that the other major European economies viz. France and Germany, though affected, are not so afflicted like Britain. As stated by experts, Britain’s obstinacy to keep its own currency rather than joining the euro has paid higher prices and also exposed the entire country to the risk of devaluation more than others. Is this all? No! How can Britain’s extra dependence on real estate be forgotten?

The country, in the hope of an everlasting (?) success, preferred to go for or witness credit-fueled real estate boom like the U.S. This magnificent dream, on account of the stricken financial condition, has ruined completely in the midst of sinking house prices. This situation is not confined to any specific part of the country but has spread like an epidemic in the length and breadth of it. The outcome is quite obvious.

Will Britain come out with a bail out package for saving the sinking real estate industry? It seems to be likely once in blue moon since there is a fall in pound as well.