Chenglong International UK House Price Falls Rate Quickens

Online, June 7, 2011 (Newswire.com) - Chenglong International -- The average price of a home in the UK fell by 1.4% according to a respected index from the Halifax, the nation's largest lender.

The numbers appeared to pour cold water on suggestions from commentators and vested interests that the low interest rate environment prevailing in the UK would somehow sustain prices that remain elevated despite widespread affordability problems.

Chenglong International analyst said, "We are perpetually amazed and amused by the hopeless optimism of realtors and other vested interests. They refuse to accept that, with higher interest rates in the UK a virtual inevitability, affordability will suffer. It's difficult enough now to obtain a mortgage but with the trouble brewing in the sovereign debt markets that could further constrain lending, the austerity measures imposed by the coalition government and the prospect of higher rates, it really is a no-brainer that property values will plunge."

UK homeowners have been insulated from the brunt of the fallout from the credit crunch and the country's deepest recession in generations by rock-bottom interest rates which have been held at 0.5% for two years but, with inflationary pressures gaining momentum, it is likely that the Bank of England will be forced to hike rates and, by extension, hit millions of households already struggling to make ends meet.

"Chenglong International" restated their advice to clients to avoid purchasing UK property unless "absolutely necessary".