News reports are claiming that January 2008 has echoes of another difficult time – the early 1990s. The Royal Institution of Chartered Surveyors said that more surveyors are recording an increase in house price falls. The surveyor's body states that the extent of the drop in house prices has not been seen since the 1990s. In 1992 the UK experienced a massive property slump. The fear is that many homeowners are relying on the equity in their homes to help them get out of debt. For some, debt management will become a massive priority if they can no longer rely on house price inflation.

Debt management and the housing market

The BBC reported that the house price predictions and figures released by the Royal Institute of Chartered Surveyors are the gloomiest figures since late 1992. Debt advisors are concerned that more homeowners may have to seek emergency debt management solutions to ward off the risk of them losing their homes. Interest rates and tighter lending criteria are leaving many homeowners in financial trouble. If they fall into mortgage arrears, it could be harder to remortgage leaving them with no easy access to equity or credit. Debt management may be the only option left.

Consumer's turn to debt management solutions

Research from major lending institutions suggests that the property market is also set to weaken throughout 2008 and into 2009 as mortgage approvals are falling to a three year low. Weak demand for property, a shortage of disposable income, the increased cost of home ownership and the lack of consumer confidence means more people are seeking out ways of saving their pennies, alongside strategies for debt management.
A spokesman from the Royal Institution of Chartered Surveyors told the BBC: "The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007."

Some economists fear that the UK economy could deteriorate further, leaving many homeowners who over borrowed to get onto the property ladder in irreparable debt, searching out effective and fast debt management solutions.

Debt Management Solutions with Varden Nuttall

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.