shutterstock_2143378The Bank of England has gravely warned that Britain’s booming housing market could be on track to crash due to soaring property prices.
Deputy governor, Sir Jon Cunliffe said,

“It would be dangerous to ignore the momentum that has built up in the UK housing market since the spring of last year…This is a movie that has been seen more than once in the UK.”

Mr Cunliffe added that the housing market could be in for a “soft landing” but warned that “other outcomes are very possible” and that the Bank’s financial policy committee, which looks out for threats to financial stability, “will need be both vigilant and ready to act.”

Prophetic warnings like this are refreshingly welcome rather than the sanitised figures issued by the government to date who claim we are in the face of a resplendent, resurgent housing market.

The myth of the gloriously strong housing market recovery certainly is certainly not reflected in reality.

The harsh reality is 1 in 5 people are lumbered with huge mortgages.

The truth is families have been incapacitated by crippling negative equity amalgamated with huge childcare costs and falling incomes.

When people are facing dire personal and mortgage debt, predictions from the Bank of England of a further crash will undoubtedly see massive mortgage default.

Whilst Mr Cunliffe sagely warns that we “will need be both vigilant and ready to act,” it is institutions like ‘Rescue My Property’ (RMP) that have been established to counter this endemic.
RMP represent people with large complex debt issues and has helped over 3000 clients in the past 8 years to deal with their property related problems, in dealing with evaluating situations, proposing manageable solutions, negotiating with banks and creditors, planning and effecting insolvency arrangements and bankruptcy in the least damaging way.

Lakhi Singh, Head of Asset Consultancy at RMP said,

“So many people are mired in personal and mortgage debt.

“When people approach us, it’s an incredible weight lifted off their shoulders. They see us as being their saviour.

“Typically, we put a plan of action into place immediately, which in many cases results in debt write-off.”

The guardian.com